Car Depreciation Calculator
Estimate a car's value after several years at an annual depreciation rate.
Result
Value after N years
4,437,053
Value lost
5,562,947
How it works
Depreciation is compound decline: value = purchase price × (1 − rate)^years. At 15% a year, a 30,000 car is worth about 25,500 after one year and roughly 13,300 after five. The curve is steepest at the start. A new car often loses 15–25% in its first twelve months, simply by ceasing to be new, and the first three years typically account for around half the total loss. After that the decline flattens, which is why a well-kept three-year-old car is usually the sweet spot: the first owner absorbed the worst of it. Depreciation is almost always the largest cost of owning a car — bigger than fuel, insurance and servicing combined — yet it is invisible because you never write a cheque for it. You only meet the bill on the day you sell.
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Frequently asked questions
How fast do cars depreciate?
Often 15–20% per year, with the biggest drop in the first year.
Why does it matter?
It tells you the real cost of owning a car and a fair resale price.
Which cars lose value the least?
Models with a strong reliability reputation and steady second-hand demand hold value best, while premium trims and rare options rarely return what they cost. The single biggest lever is buying a car that is already two or three years old.
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