Car Depreciation Calculator
Calculate your car's current value based on standard depreciation rates.
This tool is for informational and educational purposes only. It is not a substitute for professional financial, medical, legal, or engineering advice. See Terms of Service.
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Knowing your car's estimated depreciated value is useful for insurance purposes, setting a private sale price, evaluating a trade-in offer, or deciding when to sell before value drops further. The standard depreciation rates used here are typical averages. Luxury vehicles, EVs, and trucks may depreciate at different rates.
- Enter the original purchase price. Use the original MSRP or what you paid for the vehicle when new.
- Enter the current age. You can use decimals for partial years. A 2.5-year-old car entered as 2.5 interpolates between year 2 and year 3 values.
- View the depreciation table. The table shows year-by-year value and annual loss for the first 10 years, helping you see when the steepest depreciation is behind you.
Note: this is a mathematical model using industry-average rates. Actual value depends on make, model, mileage, condition, trim level, and local market demand. Use Kelley Blue Book or CarGurus for a market-specific estimate.
About the Car Depreciation Calculator
New cars lose the most value in the first two years. The model used here: 20% in year one, 15% in year two, 10% per year in years three through five, and 7% per year after that. A $35,000 new car is worth approximately $28,000 after year one, $23,800 after year two, and $21,420 after year three. After five years, it retains about 55% of its original value, or roughly $19,250. The depreciation rate slows significantly after year five, which is why buying a 5-year-old used car and keeping it for 5 more years can be the most cost-effective ownership strategy.
Frequently Asked Questions
What cars depreciate the slowest?
Trucks and SUVs (especially Toyota Tacoma, 4Runner, Land Cruiser, Jeep Wrangler) historically hold value better than average. Toyota and Honda vehicles in general retain value well. Vehicles with strong towing or off-road capability, low production volumes, or cult-following demand depreciate more slowly. New EVs from some brands have depreciated unusually fast as the market matures and competition increases.
How does mileage affect car depreciation?
Every 10,000 miles above the average (roughly 13,500 miles/year in the US) reduces a vehicle's market value by approximately $500-$1,500 depending on the vehicle. A car with 30,000 miles at 3 years old will be worth more than the same car with 60,000 miles. High-mileage examples typically sell for 10-20% less than low-mileage equivalents of the same age.
When is the best time to sell a car to minimize depreciation loss?
The steepest depreciation happens in the first two years, when a car can lose 30-35% of its value. Selling after year three but before the 5-6 year mark (typically around 60,000-75,000 miles for average drivers) often captures most of the remaining value before the reliability concerns of older age begin pushing prices down further. Keeping a reliable car past 100,000 miles is often the cheapest per-mile option.
Does depreciation affect my car insurance?
Yes. Comprehensive and collision coverage pays the actual cash value (ACV) of your vehicle if it is totaled. ACV is approximately the depreciated market value. If your car is worth $18,000 but you owe $22,000 on it, you have a $4,000 gap. Gap insurance covers this difference. Gap coverage is typically inexpensive and most valuable in the first 1-3 years of ownership when the loan balance can exceed the car's value.