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Car Depreciation Calculator

Calculate how much your car loses in value each year and its resale value over time.

Enter Details

$35,000
18%
8%
5 yrs
12000 mi

Results

Estimated Value After 5 Years$20,560
Total Depreciation Loss$14,440
Value Retained58.7%
Depreciation Cost Per Mile0.241
Average Annual Value Lost$2,888
Results are estimates for educational purposes only. Not financial or tax advice.

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Frequently Asked Questions

How fast do cars depreciate?

New cars lose the most value in the first year and less each year after (the calculator defaults to 18% in year one and 8% per year after). After 5 years the typical car retains about 58% of its original value (iSeeCars 2026 average 5-year depreciation: 41.8%). Luxury cars, sports cars and some EVs depreciate faster. Trucks and SUVs from Toyota and Honda tend to hold value best.

Which cars depreciate the least?

Lowest depreciation (best resale value): Toyota Tacoma, Honda Civic/Accord, Toyota 4Runner, Subaru Outback, and Jeep Wrangler. Highest depreciation: Maserati, Jaguar, Lincoln, Cadillac, and most luxury sedans. Fuel efficiency, reliability reputation and brand desirability drive resale value.

How does depreciation affect car buying decisions?

Depreciation is often the biggest cost of car ownership โ€” far exceeding fuel and insurance on newer vehicles. Buying a 2-3 year old used car lets someone else absorb the steep first-year drop. CPO (certified pre-owned) vehicles offer warranty protection alongside reduced depreciation cost.

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