Car Depreciation Calculator

How car depreciation works

Most cars lose the most value in the first year, then decline more slowly. This calculator applies a first-year loss and then a steady yearly loss. The starting values of 20% and 15% are a rough pattern for new cars, but real depreciation depends on the make, model, mileage and market, so adjust them for your car.

Why it matters

Depreciation is usually the biggest single cost of owning a new car, bigger than fuel or insurance. AAA's 2026 study put it at about $4,422 a year on average. Buying a car that is a few years old lets the first owner absorb the steepest drop. See the full picture with the car ownership cost calculator.

Results are estimates based on the numbers you enter. See our disclaimer.