Car Depreciation Calculator
See what a car will be worth down the road. Enter the price today and a yearly depreciation rate to project its value over the next 1 to 15 years, plus how much it loses each year.
| Year | Estimated value | Total depreciation |
|---|---|---|
| Today | $30,000 | - |
| Year 1 | $25,500 | -$4,500 |
| Year 2 | $21,675 | -$8,325 |
| Year 3 | $18,424 | -$11,576 |
| Year 4 | $15,660 | -$14,340 |
| Year 5 | $13,311 | -$16,689 |
Estimate only, using a steady annual rate. Real depreciation is steepest in year one and varies by make, model, mileage and condition. Toyota and Honda models typically hold value best; luxury and EV models often fall faster.
How car depreciation works
Depreciation is the gap between what you pay for a car and what you can sell it for later, and it is usually the single biggest cost of owning one. The drop is steepest early: a new car often loses 20 to 30 percent in the first year, then around 15 percent a year after that. The calculator above uses a steady yearly rate so you can compare scenarios quickly.
What rate should I use?
- 10 to 12 percent: strong value holders such as Toyota, Honda, Lexus and most trucks.
- 15 percent: a sensible default for a typical mainstream car.
- 20 percent or more: luxury sedans, large EVs and models with weak resale demand.
Buying a car that is already two to three years old lets the first owner absorb the worst of the depreciation while you still get a nearly new vehicle. That is often the single best value move in the used market.
Want a real value for a specific car?
Run its VIN for a market valuation with trade-in, private-party and dealer-retail prices.
The VIN is on the dashboard, door jamb, or title.
Frequently asked questions
How much does a car depreciate per year?+
A typical new car loses about 20 to 30 percent of its value in the first year and roughly 15 percent a year after that, so it is worth around 40 percent of its original price after five years. Reliable brands like Toyota and Honda depreciate more slowly, while luxury cars and many EVs fall faster.
Which cars hold their value best?+
Trucks, and reliable brands such as Toyota, Honda, Lexus and Subaru, hold value best. A Toyota Tacoma or 4Runner can keep 60 percent or more of its value after five years. Luxury sedans, large EVs and cars with weak reliability records tend to lose value fastest.
Why do new cars lose so much value in the first year?+
A car stops being new the moment it is driven off the lot, and buyers will not pay new-car prices for a used one. First-year depreciation is the steepest, often 20 to 30 percent, which is why buying a lightly used car two to three years old avoids the biggest single hit.
How do I find a specific car’s real value?+
Depreciation curves are estimates. For an exact figure on a specific vehicle, run its VIN on CarWorthIt to get a real market valuation with trade-in, private-party and dealer-retail values based on the actual year, mileage and options.
Checking a specific car?