Car Depreciation Calculator

Understand the hidden cost of car ownership. A new car drops 20-25% the moment you drive it off the lot. By year five, most cars have lost 50-60% of their original value. Luxury brands like BMW depreciate 40-60% faster than reliable brands like Toyota. This is why the 2-year-old certification strategy works: someone else takes the biggest depreciation hit, and you get a nearly-new car at a much lower total cost of ownership. The formula Remaining = Price × (1 - Rate)^Years shows why driving 15,000 miles/year at an average depreciation rate of 15% means your $35,000 car is worth only $17,000 after five years.

How to Use This Tool

Enter your purchase price.
Enter years owned and annual depreciation rate.
Get current value and total loss.

The Formula

Remaining = Price × (1 - Rate)^Years. Average car loses ~60% in 5 years.

Why It Matters

You buy a new car for $45,000. Cars lose 23% in year one, 15% in year two, then 10-15% annually. After 5 years, your car is worth ~$23,600 — you have lost $21,400. Buying a 3-year-old model saves that first hit.