BYTETOOLS

Car Depreciation Calculator

Project a car's resale value year by year with declining-balance depreciation, separate first-year and later rates, and the cost per year and per mile driven.

$14,616
Value after 5 years
$20,384
Total depreciation
58.2%
% of value lost
$0.340
Cost per mile

Value year by year

YearResale valueLost that yearCumulative loss% remainingPer mile
1$28,000$7,000$7,00080.0%$0.583
2$23,800$4,200$11,20068.0%$0.467
3$20,230$3,570$14,77057.8%$0.410
4$17,195$3,035$17,80549.1%$0.371
5$14,616$2,579$20,38441.8%$0.340

Depreciation averages $4,077 a year over 60,000 miles of driving.

This is a declining-balance model: the car keeps the same fraction of its value each year, so losses are largest early and taper off. Real resale values depend on make, model, condition, mileage, options and the used market — check actual listings for your vehicle before relying on a number. Estimates only, not financial advice.

What is the Car Depreciation Calculator?

The ByteTools Car Depreciation Calculator projects what a vehicle will be worth as it ages. It uses a declining-balance model — the car keeps the same fraction of its value each year — with a separate, steeper rate for the first year, because the drop the moment a new car leaves the lot is much larger than any year after it.

  • Declining-balance model with separate first-year and later-year rates
  • Year-by-year resale value, annual loss and cumulative loss
  • Percentage of original value remaining at each year
  • Depreciation cost per year and per mile or kilometre driven
  • Miles or kilometres toggle, any currency, CSV export
  • Private in-browser math; estimates only, not advice

How to use the Car Depreciation Calculator

  1. 1

    Enter the purchase price and how many years you want to project.

  2. 2

    Set the first-year depreciation rate and the rate for each year after it.

  3. 3

    Choose miles or kilometres and enter how far you drive each year.

  4. 4

    Read the resale value, total depreciation, percentage lost and cost per mile or kilometre.

  5. 5

    Review the year-by-year table and download it as a CSV if you need it.

About the Car Depreciation Calculator

The ByteTools Car Depreciation Calculator projects what a vehicle will be worth as it ages. It uses a declining-balance model — the car keeps the same fraction of its value each year — with a separate, steeper rate for the first year, because the drop the moment a new car leaves the lot is much larger than any year after it.

You get a table of resale value at each year, how much was lost in that year alone, the cumulative loss, and the percentage of the original price still remaining. Depreciation is also expressed per year and per mile or kilometre driven, which is the honest way to compare the real running cost of one car against another.

Both rates are editable because depreciation varies hugely by make, model and market — some vehicles hold value remarkably well and others fall off a cliff. All calculations run locally in your browser and nothing is uploaded. Estimates only, not financial advice.

Frequently asked questions

How much does a new car depreciate in the first year?

A commonly cited figure is 15% to 25% in the first twelve months, with part of that lost the moment the car is registered. The exact drop depends heavily on the model and how strong the used market is, which is why the first-year rate is an input here.

How do you calculate car depreciation?

This tool uses declining balance: value equals price times one minus the first-year rate, then times one minus the later rate for each additional year. That produces large early losses that taper off, which matches how used-car prices actually behave far better than a straight-line model.

What is depreciation cost per mile?

It is the total value the car has lost divided by the miles you have driven in that time. It is one of the largest real costs of car ownership and often exceeds fuel, yet it is invisible until you sell. Comparing this figure between two cars is genuinely revealing.

Which cars depreciate the least?

Historically, models with strong reliability records, high demand and limited supply hold value best, while luxury cars and models with heavy incentives tend to fall fastest. This calculator does not have model-specific data, so look up real listings for your vehicle and set the rates to match.

Does buying used avoid depreciation?

It avoids the steepest part of it. A two or three year old car has already taken the biggest hit, so entering a lower first-year rate to reflect a used purchase will show a much flatter curve from that point on.

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