Car Depreciation Calculator
Project a vehicle's value year-by-year. New cars drop ~20% in year one, then ~15%/year after.
Inputs
| Year | Value | Lost that year | Cumulative loss |
|---|---|---|---|
| Year 1 | $28,000.00 | $7,000.00 | $7,000.00 |
| Year 2 | $23,800.00 | $4,200.00 | $11,200.00 |
| Year 3 | $20,230.00 | $3,570.00 | $14,770.00 |
| Year 4 | $17,195.50 | $3,034.50 | $17,804.50 |
| Year 5 | $14,616.18 | $2,579.33 | $20,383.83 |
How it works
Year 1: value × (1 − year1%). Subsequent years: prior year × (1 − yearN%). We apply this recursively for the number of years you set.
Frequently asked questions
Why do cars lose 20% in the first year?
The moment a car is titled, it moves from 'new' to 'used' in the market, which is a major price tier drop.
Which cars depreciate slowest?
Toyota, Honda, and select trucks (Tacoma, 4Runner) historically hold value best. Luxury sedans depreciate fastest.
Do EVs depreciate differently?
Yes — traditionally faster, but the gap is narrowing. Tesla resale in particular has been closer to gas peers.
Is depreciation tax-deductible?
For personal vehicles, no. For business use, yes — via MACRS or the standard mileage deduction.
Should I lease to avoid depreciation?
Leasing doesn't avoid depreciation — you pay for it in the monthly payment. It just spreads it evenly.