Car Depreciation Calculator
Quick answer: a typical new car loses about 21% in year one and close to 60% in five years. Enter your vehicle below to see its value each year, by make tier and mileage, and what the drop costs you per month.
Get a plain-English read of your numbers, or ask anything about depreciation, when to sell or lease vs buy. Nothing is sent until you press Ask.
Today $35,000
- Total value lost
- $20,577 (59%)
- Cost of depreciation per month
- $343
- Each extra 1,000 miles a year costs
- $288 by the end
- Worst single year
- $7,350
| Year | Value | Lost that year | Total lost |
|---|---|---|---|
| Today | $35,000 | — | 0% |
| Year 1 | $27,650 | $7,350 · 21% | 21% |
| Year 2 | $22,950 | $4,701 · 17% | 34% |
| Year 3 | $19,278 | $3,672 · 16% | 45% |
| Year 4 | $16,579 | $2,699 · 14% | 53% |
| Year 5 | $14,423 | $2,155 · 13% | 59% |
How much will my car depreciate?
Most new cars lose about 20% in the first year and roughly 60% within five years, the rule of thumb published by Carfax and echoed by Kelley Blue Book and Edmunds. The drop isn't a fixed dollar amount: each year the car loses a percentage of whatever it's still worth, so the curve is steep at first and flattens out.
This calculator uses separate curves for each vehicle type, because a pickup and a luxury sedan age very differently. It then adjusts for how far you drive and how well the model holds its value. If your car isn't new, enter its age and today's value: the projection continues from where it already sits on the curve.
What drives the number
- Age: the biggest factor. Year one is the steepest.
- Vehicle type: trucks and body-on-frame SUVs hold value best; luxury cars and EVs drop fastest.
- Brand and model reputation: Toyota, Lexus, Honda, Porsche 911 and Jeep Wrangler are known for strong resale.
- Mileage and condition: more miles, dents or a poor history mean a lower price.
- Market shocks: new-price cuts (common with EVs), fuel prices and supply shortages move whole segments.
Want the numbers behind the curve? The depreciation rate table lists the yearly rate for every vehicle type, and the reference library explains which vehicles hold value and why, and the brand pages show how Toyota, Ford, Tesla, BMW and others compare.
In year 1 the car goes from $40,000 to $31,600: a loss of $8,400, which is 21% of what it was worth at the start of that year.
The yearly percentage barely changes after year one (about 12–16%), but it's taken from a shrinking value, so the dollar loss keeps falling. That's why a 3-year-old car is often the best value: the first owner already paid for the steepest part of the curve.
Seeing a rule turn into a picture is the fastest way to get it. That's the idea behind ahaboo, a free site where you work through explainers by dragging and zooming, including one on how tax brackets actually work.
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Questions people ask
How much does a car depreciate per year?
A typical new car loses about 20% of its value in the first year and roughly 12–16% of its remaining value each year after that, according to widely cited Carfax and Kelley Blue Book figures. After five years most cars are worth about 40% of what they cost new. Trucks and some SUVs lose less; luxury cars and EVs usually lose more.
How much will my car depreciate?
Enter what you paid (or what the car is worth today), its age, the years you plan to keep it, your yearly miles and how well the model holds value. The calculator continues the depreciation curve from the car's current age, so a 4-year-old car is projected on the flatter part of the curve, not the steep first-year part.
Is depreciation calculated on the purchase price or the current value?
Market depreciation is a percentage of the current value each year, which is why the dollar loss shrinks over time. Tax depreciation for a business vehicle is different: it uses fixed IRS percentages of the original cost basis. For that, use the business vehicle depreciation calculator.
Does mileage affect depreciation?
Yes. Values assume about 12,000 miles a year for cars. Each extra 1,000 miles a year costs roughly a few tenths of a percent of value per year of age; very low mileage adds a smaller premium. The effect is capped because condition and history matter too.
When does car depreciation slow down?
The steepest dollar losses are in years one to three. By years six to eight the yearly percentage settles near 10% and the dollar amounts are small, which is why keeping a car longer is usually the cheapest way to own one.
How accurate is this calculator?
It uses published industry averages by vehicle type, adjusted for mileage and how well the brand holds value. Real prices depend on the exact trim, local demand, accident history and condition. For a sale price, check current local listings or a pricing guide such as Kelley Blue Book or Edmunds.