How it works
Project a vehicle's value after depreciation at a constant annual rate.
Enter the purchase price, an annual depreciation rate, and the number of years. The calculator applies declining-balance depreciation and reports the estimated remaining value.
Formula
Value = price × (1 − rate ÷ 100)^years; total depreciation = price − value.
P- Purchase price (currency)
r- Annual depreciation rate (%)
n- Years (years)
Examples
- 30,000 at 15% per year for 5 yearsPrice 30,000 · rate 15% · 5 yearsValue ≈ 13,311.16 · total depreciation ≈ 16,688.84
Frequently asked questions
What rate should I use?
There is no universal rate. Many vehicles lose roughly 15–25% per year early on, but brand, model, condition, and mileage matter — use a rate you can justify.
Is actual depreciation linear?
No. The calculator uses declining-balance (a percentage of the remaining value each year), which mirrors how car value loss slows over time.
How to read the result
The value is the estimated market value after the chosen years; total depreciation is the amount of value lost.
Limitations
A constant-rate model. Real depreciation varies by make, model, mileage, condition, and market. Not a valuation or appraisal.
Source: Declining-balance depreciation formula.