Car Depreciation Calculator

Estimate your car's current value based on age and depreciation curve. See year-by-year value decline.

By Konstantin Iakovlev · Updated September 2026 · Source: IRS — Publication 946, How To Depreciate Property

$
years
mi/yr

Estimated Current Value

$20,944.00

Total Depreciation

$14,056.00

Value Remaining

59.8%

Annual Depreciation Cost

$4,685.33

Depreciation by Year

Year 1$28,000.00 (-20%)
Year 2$23,800.00 (-15%)
Year 3$20,944.00 (-12%)

Estimates based on average depreciation curves. Actual values vary by make, model, condition, mileage, and market conditions.

Use the Car Depreciation Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only. Results are estimates based on the information you provide and the assumptions described on this page.

How It Works

Every vehicle sheds value the moment it leaves the lot, and projecting how much it will lose over the years you own it shapes smart budgeting and resale planning. Knowing the curve in advance helps you buy with open eyes and plan around the car's useful life.

The model takes a declining percentage off the remaining value each year: 20% in year one, 15% in year two, 12% in year three, 10% in each of years four through six and 7% a year after that, for up to 15 years. On that schedule a car keeps about 60% of its price after three years and about 48% after five. It is a generic curve, not one fitted to a particular make or model.

Underestimating this decline is how buyers end up owing more than the car is worth or feeling shortchanged at trade-in time. Real-world depreciation also responds to condition, service records, and how much demand exists for a particular model, any of which can move the actual rate well off this baseline estimate.

Example: A $32,000 New Car After 3 Years

  1. 1 Input a purchase price of $32,000 and a car age of 3 years.
  2. 2 Year 1: $32,000 × 20% = $6,400 of depreciation, leaving $25,600. Year 2: $25,600 × 15% = $3,840, leaving $21,760. Year 3: $21,760 × 12% = $2,611.20, leaving $19,148.80.
  3. 3 After 3 years the estimated value is $19,148.80, or 59.8% of the purchase price. Total depreciation is $12,851.20, an average of $4,283.73 a year.
  4. 4 This estimate can help you judge a trade-in offer, understand the true cost of ownership, and plan when to sell or replace the car. A car driven hard or kept in poor condition will usually be worth less than the schedule shows.

Source: IRS — Publication 946, How To Depreciate Property · Last updated: September 2026

Frequently Asked Questions

How much does a new car depreciate in the first year?
This calculator assumes a new car loses 20% of its value in the first year, and its schedule reaches about 52% total depreciation by the end of year five. Real losses vary by model. Luxury vehicles and certain brands depreciate faster.
Which cars hold their value the best?
Trucks and SUVs (Toyota Tacoma, Jeep Wrangler, Toyota 4Runner) and certain brands (Porsche, Toyota, Lexus) hold value best. Electric vehicles have historically depreciated faster, though popular models like Tesla are stabilizing.
Is buying a 2-3 year old used car the best value?
Yes, for most people. A 2-3 year old car has absorbed the steepest depreciation while still having modern safety features, remaining warranty coverage, and many years of life ahead. You can save 30-40% compared to buying new.

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