Car Depreciation Calculator
How much will your car lose in value? See year-by-year depreciation, true cost of ownership, and whether buying new or used gives you the best deal.
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How to Use This Calculator
Depreciation Curve tab
The default tab. Enter your purchase price, vehicle type, and condition (new or used). The calculator shows how much value your car loses each year for 10 years, along with the total depreciation and residual value at the 5-year mark. Expand "More options" to adjust annual mileage and see whether color affects resale value.
True Cost of Ownership tab
See the full picture beyond depreciation. Enter your purchase price, financing terms, and the calculator adds insurance, fuel, and maintenance to show the true 5-year cost. You get cost per mile and cost per month — the numbers that actually matter for budgeting.
New vs Used Sweet Spot tab
Compare the total cost of buying new vs 1-year vs 3-year vs 5-year old vehicles side by side. The calculator accounts for different loan rates, higher maintenance on older vehicles, and optional extended warranty costs. It finds the age that gives you the best total value.
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The Formula
Car depreciation follows a declining curve. The steepest loss happens in year 1, then gradually slows:
Typical rates by year:
Year 1: 18-25% (depends on vehicle type)
Year 2: 13-16%
Years 3-5: 8-13% per year
Years 6-10: 5-8% per year
Total Cost of Ownership = Depreciation + Interest + Insurance + Fuel + Maintenance
Depreciation is the single largest cost of car ownership, often exceeding the combined cost of fuel, insurance, and maintenance. A $35,000 sedan loses roughly $17,000 in value over 5 years — nearly $300/month in invisible cost.
Example
David — 2026 Toyota Camry, $32,000
David buys a new 2026 Toyota Camry for $32,000. He drives 12,000 miles per year, finances at 6.5% for 60 months, and pays average insurance, fuel, and maintenance costs.
Depreciation Curve
True Cost of Ownership (5 years)
David's $32,000 car actually costs him roughly $49,000 over 5 years — 153% of the sticker price. Depreciation alone accounts for 34% of the total cost.
Depreciation by Vehicle Type (2026)
| Vehicle Type | Year 1 | Year 2 | Year 3-5 | 5-Year Total | Notes |
|---|---|---|---|---|---|
| Sedan | -20% | -15% | -10-12%/yr | ~52% | Average depreciation |
| SUV | -18% | -14% | -9-11%/yr | ~47% | Holds value better than sedans |
| Truck | -18% | -13% | -8-10%/yr | ~44% | Best resale (Tacoma, F-150) |
| Luxury | -22% | -16% | -11-13%/yr | ~58% | Worst resale, highest $ loss |
| Electric | -25% | -16% | -9-12%/yr | ~54% | Improving as market matures |
Source: iSeeCars 2025 data, Edmunds, CarEdge. Average across all makes and models within each category.