Car Depreciation Calculator
A vehicle's value decline year by year using the declining-balance method.
Every calculation runs locally in your browser. Actual depreciation varies by make, model, mileage, and market conditions — 15%/year is a common rule-of-thumb rate, not a guarantee for any specific vehicle.
Value after 5 years
$13,311
Total depreciation
$16,689
Value over time
For informational and educational purposes only — not financial, investment, or tax advice, and not a substitute for consulting a qualified professional about your specific situation. TrueMeasureKit is not liable for decisions made based on these results. See our Terms of Service.
Why the first year hits hardest
Declining-balance depreciation applies the same percentage to a shrinking base every year, so the dollar amount lost is largest in year one and gets smaller each year after — even though the rate stays constant. This matches how cars actually depreciate in practice: a new car loses a disproportionate chunk of value the moment it's driven off the lot and through its first year, then the rate of value loss gradually eases in later years.
Frequently asked questions
How much does a new car depreciate in the first year?
New vehicles commonly lose roughly 20% of their value in the first year, and around 15–20% per year after that — though this varies a lot by make, model, and mileage.
What's the declining-balance method this calculator uses?
It applies the same depreciation percentage to the remaining value each year, rather than a flat dollar amount — which is why the dollar loss is largest in year one and shrinks in later years, even at a constant percentage rate.