Car Depreciation Calculator
Estimate a car's current value using the typical first-year and annual depreciation rule.
What is the Car Depreciation Calculator?
This tool estimates a vehicle's current value by applying a commonly cited depreciation rule of thumb — roughly 20% value loss in the first year, then about 15% of the remaining value each year after — to the car's original price and age.
The formula
After year one: Value = Price × (1 − First-Year Rate). Each subsequent year: Value = Previous Value × (1 − Annual Rate), compounding down year by year.
How to use it
- Enter the car's original price and its current age in years.
- Adjust the depreciation rates if you have more specific data (some makes and models hold value much better or worse than the general average).
An important accuracy note
"20% then 15%/year" is a widely cited rule of thumb, not a precise formula — actual depreciation varies enormously by make, model, mileage, condition and market conditions, and industry-wide average 5-year depreciation has recently been running gentler than this classic rule would predict amid strong used-car demand. For a real transaction, check actual market listings or a valuation service for your specific vehicle rather than relying on this estimate alone.
Want the "why" behind this tool? Read The '20% First Year' Car Depreciation Rule, Explained.