How does constant annual decline work?
Each year the remaining value is multiplied by (1 − rate).
Car Depreciation Calculator
Project remaining vehicle value from purchase price, years owned, and an annual decline rate or preset schedule.
Estimate vehicle value
Choose constant annual % decline or a typical front-loaded schedule estimate.
About this calculator
How to use Car Depreciation Calculator, plus the formulas and logic behind the results.
Tool description
Vehicles typically lose value fastest in early years. This calculator applies either a constant annual percent decline or a simple educational schedule with larger first-year loss.
How to use
- Enter the purchase (or starting) price.
- Enter how many whole years have passed.
- Pick constant % mode or schedule mode.
- Select Calculate to view estimated value and total depreciation.
Formulas & reference
Constant: Value = Price × (1 − rate)^yearsSchedule (illustrative): year1 −20%, then −15%, −12%, −10%, then −8%/yrDepreciation = Price − Estimated value
Vehicle value tips
- New cars often drop sharply in year one
- High mileage accelerates loss
- Schedule mode is illustrative only
- Compare with local market listings
Calculation logic
Annual-rate mode compounds a retention factor each year. Schedule mode multiplies year-specific retention factors for the first years, then a steady rate thereafter.
Mileage, condition, brand, and market cycles matter enormously—treat results as rough education, not an appraisal.
Car Depreciation Calculator FAQ
Common questions about the calculation and how to interpret the estimate.
What is schedule mode?
An educational pattern with heavier early-year losses, then a milder ongoing rate.
Is this an official appraisal?
No. It is a simplified estimate for planning discussions.
Can value go to zero?
After enough years at a high rate it can approach zero, but the tool floors at $0.
Should I include taxes and fees in purchase price?
Use the price basis you care about—often the negotiated vehicle price before tax.
Does mileage matter?
Yes in reality; this model does not adjust for miles or condition.