Car Depreciation Calculator (Year-by-Year Value Curve)
Depreciation is the cost most owners never see on a statement, and it dwarfs the ones they do. A typical new car loses about twenty percent of its value in the first twelve months and roughly sixty percent over five years, which on a mid-priced family car is more than fuel, insurance, tax and servicing added together.
Depreciation is almost always the largest single cost of car ownership — usually more than fuel, insurance and servicing combined.
| Year | Estimated value | Cumulative loss | % of original |
|---|---|---|---|
| Year 1 | $29,792 | $8,208 | 78.4% |
| Year 2 | $24,806 | $13,194 | 65.3% |
| Year 3 | $20,646 | $17,354 | 54.3% |
| Year 4 | $17,176 | $20,824 | 45.2% |
| Year 5 | $14,282 | $23,718 | 37.6% |
| Year 6 | $12,568 | $25,432 | 33.1% |
| Year 7 | $11,054 | $26,946 | 29.1% |
| Year 8 | $9,718 | $28,282 | 25.6% |
Why the first year is so brutal
The moment a car is registered it moves from the new market to the used market, and the new-car premium — dealer margin, delivery, registration and the value buyers place on being first — disappears immediately. That is why a twelve to eighteen month old car with delivery mileage is consistently the best value purchase in the market.
What holds value and what does not
Pickups, body-on-frame SUVs, manual sports cars and hybrids with strong reputations resist depreciation. Large luxury saloons, cars with expensive optional extras, and models facing imminent replacement fall fastest. Colour matters more than people expect — unusual colours can cost several percent at resale.
Mileage versus age
Below about ten thousand miles a year, age drives value more than mileage. Above fifteen thousand, mileage begins to dominate and the penalty accelerates as the car crosses psychological thresholds at 60,000 and 100,000 miles. Service history closes part of that gap, particularly on premium brands.
Typical retained value by segment
| Segment | After 1 yr | After 3 yrs | After 5 yrs | After 8 yrs |
|---|---|---|---|---|
| Luxury saloon | 72% | 48% | 33% | 18% |
| Mainstream family car | 80% | 58% | 42% | 26% |
| Compact hatchback | 82% | 61% | 45% | 29% |
| SUV / crossover | 84% | 64% | 49% | 32% |
| Pickup truck | 87% | 70% | 56% | 39% |
| Hybrid | 85% | 66% | 51% | 34% |
| Electric vehicle | 76% | 52% | 37% | 22% |
People also ask
How much does a new car lose in the first year?
Typically fifteen to twenty-five percent, with luxury models at the higher end and pickups and hybrids at the lower end.
What is a car worth after 5 years?
Around forty to fifty percent of purchase price for mainstream models, thirty-three to thirty-eight percent for luxury saloons and electric vehicles, and over fifty-five percent for pickups.
Is buying a two year old car better value?
Usually yes. The steepest part of the depreciation curve has already passed, manufacturer warranty often remains, and the effective cost per year of ownership is materially lower.
Three worked examples
Same engine, three different starting points — useful if you want to see how sensitive the answer is before you type your own numbers in.
Example 1: purchase price 29640, currency "USD $"
On the lower / more conservative end. Depreciation is almost always the largest single cost of car ownership — usually more than fuel, insurance and servicing combined.
Example 2: purchase price 38000, currency "USD $"
A typical middle-of-the-road setup. Depreciation is almost always the largest single cost of car ownership — usually more than fuel, insurance and servicing combined.
Example 3: purchase price 49400, currency "GBP £"
On the higher / more demanding end. Depreciation is almost always the largest single cost of car ownership — usually more than fuel, insurance and servicing combined.
Quick answers about the Vehicle Depreciation
What exactly does the Vehicle Depreciation work out?
Depreciation is the cost most owners never see on a statement, and it dwarfs the ones they do. You enter currency, purchase price, age at purchase and years you will keep it (plus 3 more optional details) and the result panel updates straight away, so you can compare two or three versions of the same question in a few seconds.
What do I need before I start?
Only 7 fields: currency, purchase price, age at purchase, years you will keep it, annual mileage, vehicle segment and condition grade. Nothing else is needed and nothing is stored.
How is it calculated — why the first year is so brutal?
The moment a car is registered it moves from the new market to the used market, and the new-car premium — dealer margin, delivery, registration and the value buyers place on being first — disappears immediately. The same maths runs inside this page, so hand-checking the result on paper gives you the identical figure.
Why do two calculators give me different answers for vehicle Depreciation?
Pickups, body-on-frame SUVs, manual sports cars and hybrids with strong reputations resist depreciation. Different sites pick different assumptions, so always check which method a calculator states before you trust the gap between two numbers.
What does the "Typical retained value by segment" table on this page tell me?
It is the reference range this tool works against — 7 rows from "Luxury saloon" (72%) up to "Electric vehicle" (76%). Use it to sanity-check whether the number you just calculated sits where you expected it to.
Which currency should I pick?
The dropdown offers 4 choices — USD $, GBP £, EUR € and AUD A$. Pick the one that matches your real situation rather than the one you would like to be true; currency usually moves the final figure more than any other single input, so it is worth running it twice with the option above and below your guess.
Does it work in both metric and imperial (or another currency)?
Yes. The "Currency" control converts every field and every result, so you never have to convert anything by hand before typing it in. Switch it after entering your numbers and the output re-renders instantly in the new system.
Do I have to press a button or reload the page to see the result?
No. Vehicle Depreciation runs completely inside your browser, so the moment you change a value the cards recalculate — there is no submit step, no page reload and no waiting for a server round trip. That also means it keeps working on a weak or intermittent mobile connection.
Is it free, and do you keep what I type?
It is free with no sign-up, no app install and no usage limit. Nothing you enter into Vehicle Depreciation leaves your device — the calculation is JavaScript running locally, so there is no upload of your figures to DrHint or anyone else.
Can I use it on a phone?
Yes — the layout stacks to a single column on small screens and the number fields open the numeric keypad on both Android and iOS. Many people bookmark this page or add it to their home screen and re-open it whenever the question comes up.
Anything to be careful about with the result?
Typically fifteen to twenty-five percent, with luxury models at the higher end and pickups and hybrids at the lower end. Treat the output as a well-grounded estimate for planning, not as a professional, legal or medical decision on its own.
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