How to use this depreciation calculator
- Enter the price you paid, or the car's current value if you're projecting forward.
- Select the vehicle type: mainstream car, luxury, truck or SUV, or electric.
- Enter how many years to project and how many miles you drive each year.
- Choose the condition you expect the car to be in at the end.
- Review the estimated value for each year and the total amount lost.
How it's calculated
This is an illustrative model, not an appraisal. It applies a first-year loss, then a smaller loss each year after that, with each year's percentage applied to the value remaining, so the dollar loss shrinks over time.
- Mainstream car: 18% in year one, then 12% a year.
- Luxury: 24%, then 15% a year.
- Truck or SUV: 15%, then 10% a year.
- Electric: 25%, then 14% a year.
High mileage speeds things up: each 5,000 miles a year above 12,000 adds 1.5 percentage points to every year's rate. Finally, condition adjusts the end value: excellent adds 5%, good leaves it unchanged and fair takes off 10%.
Example: you buy a $30,000 mainstream car and drive 17,000 miles a year, which is 5,000 above the baseline. Year one becomes 19.5% and later years 13.5%. After three years: $30,000 × 0.805 × 0.865 × 0.865 = about $18,070. In fair condition, that drops 10% to about $16,263, a loss of roughly $13,737. At 12,000 miles a year and good condition, the same car would be worth about $19,050.
How to protect your car's resale value
- Keep every service record. A documented maintenance history reassures buyers and can raise offers.
- Fix small dents, chips and curb rash before selling. Visible wear often costs more in a lower offer than the repair would.
- Popular colors, common trims and widely wanted features tend to sell faster and hold value better.
- Buying a car one to three years old lets the first owner absorb the steepest part of the drop.
- Avoid aftermarket modifications if you plan to sell, since most buyers won't pay extra for them.
- Timing matters. Convertibles tend to sell better in spring, and all-wheel-drive vehicles before winter.
Good to know: Real-world values can swing well outside these estimates. Supply shortages, new model launches, fuel prices and changes to EV incentives all move used-car prices, sometimes quickly.
Frequently asked questions
How much does a new car depreciate in the first year?
The first year is usually the steepest drop. This calculator uses 15% to 25% depending on vehicle type, and actual losses vary widely by model, market conditions and how the car was bought.
Do electric cars depreciate faster?
Many have so far, because new models arrive with longer range and better tech, purchase incentives and price cuts lower what buyers will pay used, and some buyers worry about battery health. That's why the EV setting uses a higher first-year rate. Results vary a lot between models.
Is this the same as a trade-in or appraisal value?
No. It's a model based on typical rates, not a valuation of your specific car. Dealers and buyers consider local demand, trim, options, accident history and service records, so get real quotes before you sell.