Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Estimated resale value
$16,704
Total depreciation
$23,296
Share of value lost
58.2%
Depreciation per year
$4,659
Depreciation per month
$388.26
Value after year one
$32,000
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One click, a permanent link with your numbers baked in.
How to use this
- 1Enter purchase price ($).
- 2Enter first-year depreciation (%).
- 3Enter depreciation after year one (%).
- 4Enter years to project.
- 5Read your estimated resale value on the right — it updates as you type.
- 6Hit Share to keep the scenario or send it to someone.
About this calculator
New cars lose roughly 20% in year one and 15% a year after that. Buying a three-year-old vehicle lets someone else absorb the steepest part of that curve.
Worked example
Using the values the calculator loads with:
Inputs
- Purchase price: 40000 $
- First-year depreciation: 20 %
- Depreciation after year one: 15 %
- Years to project: 5
Results
- Estimated resale value: $16,704.20
- Total depreciation: $23,295.80
- Share of value lost: 58.2%
- Depreciation per year: $4,659.16
- Depreciation per month: $388.26
- Value after year one: $32,000.00
What each field means
Inputs
- Purchase price ($)
- The purchase price used in the calculation, measured in $. Starts at 40000 $ so you have a working example on load.
- First-year depreciation (%)
- The first-year depreciation used in the calculation, measured in %. Starts at 20 % so you have a working example on load. Accepted range: 0–60 %.
- Depreciation after year one (%)
- The depreciation after year one used in the calculation, measured in %. Starts at 15 % so you have a working example on load. Accepted range: 0–40 %.
- Years to project
- The years to project used in the calculation. Starts at 5 so you have a working example on load. Accepted range: 1–15.
Results
- Estimated resale value
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total depreciation
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Share of value lost
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Depreciation per year
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Depreciation per month
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Value after year one
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How does the car depreciation calculator work?
New cars lose roughly 20% in year one and 15% a year after that. Buying a three-year-old vehicle lets someone else absorb the steepest part of that curve. The underlying maths is: Value = Price × (1 − annual depreciation rate)^years.
What do I need to enter?
4 values: purchase price, first-year depreciation, depreciation after year one, and years to project. Each field starts with a sensible default, so you can change one number at a time and watch the result move.
What does the estimated resale value result mean?
It is returned as a money amount in US dollars and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds.
Is this calculator free, and do I need an account?
Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser.
How accurate is the result?
It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
Who is this tool for?
It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Car Depreciation Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/car-depreciation
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/car-depreciation" target="_blank" rel="noopener">Car Depreciation Calculator — RevenueLab</a> (2026).</p>
Source: [Car Depreciation Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/car-depreciation) (2026).