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Car Depreciation Calculator

Estimate what your car is worth today from its purchase price and age, or project its future value years from now. Built on typical US new-car depreciation curves — a realistic ballpark in seconds, not an exact appraisal.

3 modes in one tool Instant estimate Free, no sign-up Updated: Jul 21, 2026
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Enter what the car cost new (or its original MSRP) and its age today, in years — decimals like 2.5 are fine. We apply a declining-percentage depreciation curve, not a straight line. Use the depreciation rate to fine-tune the curve if you know your brand or model resells better or worse than its category average.
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"What will my car be worth in N years?" — enter today's value and current age, and we scale the same depreciation curve forward from there. Use the depreciation rate to fine-tune the curve if you know your brand or model resells better or worse than its category average.
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"What did this car probably cost new?" — enter the current asking or listing price and the vehicle's age, and we divide by the modeled retention percentage to back into an implied original MSRP.
Quick answer A new car typically loses about 20% to 30% of its value in the first year, then continues losing roughly 15% to 18% a year for several years — landing around 60% total value lost by year five and 70%+ by year ten. This calculator applies that declining-percentage curve to your purchase price and age (or projects forward from today's value) to estimate — not appraise — what your car is worth.
20–30%Typical year-1 value loss
~60%Typical loss by year 5
70%+Often lost by year 10
EstimateNot a certified appraisal
⚠️ Note: This tool estimates value using a modeled, declining-percentage depreciation curve based on typical US used-vehicle market patterns; it is not an exact appraisal and does not access real-time listings, VIN history, or accident records. Actual value depends heavily on mileage, condition, accident history, options, color, and local market demand. For a precise number, compare recent local listings for your exact make, model, trim, and mileage, or consult a professional appraiser. Results are for informational purposes only and are not financial advice.
🚗 Car Depreciation Calculator — ToolPico ↗

How does car depreciation actually work?

A plain-English guide to the US new-car depreciation curve — with the anchor figures this calculator is built on.

Depreciation — the decline in a vehicle's value over time — is usually the single largest cost of car ownership, often bigger than fuel, insurance, or maintenance combined. Unlike a loan balance, which falls in a straight line, a car's value falls fastest in its early years and then slows down. This calculator models that declining-percentage curve rather than a straight-line one, and lets you estimate a current value from a purchase price and age, or project a future value forward from today's value.

How much value does a new car lose in the first year?

Quick answerMost new vehicles lose roughly 20% to 30% of their purchase price in the first year alone — the steepest single-year drop of the entire ownership period. A car shifts from "new" to "used" the moment it is titled and driven off the lot, and annual model-year refreshes make the prior year's model look instantly dated to buyers.

How much does a car depreciate over 5 years?

Quick answerOn typical US depreciation curves, a car retains only about 35% to 45% of its original value after 5 years — commonly cited around 60% total value lost by year five. The pace slows considerably after the first year or two: a car might lose 20-25% in year one but only 8-10% in year eight.

Does vehicle type change the depreciation curve?

Yes. Trucks, SUVs, and pickups generally hold value a little better than sedans and hatchbacks, thanks to steadier used-vehicle demand. Luxury and sports cars typically depreciate faster — high purchase prices, costly upkeep, and a smaller pool of used-luxury buyers all push the curve down more quickly. This calculator lets you pick a vehicle type to nudge the curve in either direction; the underlying shape (steep early, flatter later) stays the same.

What else affects a car's real-world value?

Age drives the general curve, but plenty of other factors move the actual number:

  • Mileage — higher-than-average mileage for the car's age accelerates value loss; lower-than-average mileage slows it.
  • Condition and accident history — clean title, no accidents, and good cosmetic condition all support a higher value.
  • Maintenance records — documented, regular service reassures buyers and can support resale price.
  • Color and trim popularity — common, in-demand colors and trims typically resell faster and for more.
  • Local market demand — the same car can be worth noticeably more or less depending on regional supply and demand.
  • Make and model reputation — models known for reliability tend to hold value better than average.

Why declining-percentage, not straight-line, depreciation?

A straight-line model (say, "lose 10% of the original price every year") badly understates year-one loss and overstates loss in later years. Real used-vehicle pricing data consistently shows a steep early drop that gradually flattens — so this calculator compounds a percentage loss each year rather than subtracting a fixed dollar amount, which tracks real-world pricing far more closely.

Depreciation reference tables

Citable reference figures: retained value by age, how vehicle type shifts the curve, and estimated values at common purchase prices.

Typical retained value curve — Sedan / Hatchback / Coupe (% of original price)
Vehicle ageValue remainingCumulative loss

Modeled average curve. Actual value also depends on mileage, condition, accident history, and local market demand.

Percent of original value remaining, by vehicle type
Vehicle typeYear 1Year 3Year 5Year 10

Trucks/SUVs tend to hold value a little better than sedans; luxury/sports models tend to depreciate faster.

Estimated value by original price (Sedan / Hatchback default)
Original priceYear 1Year 3Year 5Year 10

Use the calculator above for your own purchase price, age, and vehicle type.

Cars that hold value best vs. worst

A curated reference list of commonly-cited models at the strong and weak ends of 5-year resale retention. Actual results vary by trim, mileage, condition, and market — use this as a general starting point, not a guarantee.

Commonly-cited 5-year retained value, by model (illustrative reference figures)
ModelCategoryTypical 5-yr retention

Figures are illustrative, rounded ranges commonly cited in used-vehicle resale-value studies (e.g. iSeeCars-style annual reports), not a live pricing feed. Green rows are frequently cited as strong resale performers; red rows are frequently cited as faster-depreciating. Use the calculator above with the "Depreciation rate" selector to model a specific model's tier.

Add this calculator to your site (embed code)

Embed the car depreciation calculator on your own website for free. Copy the code below into your HTML — the tool runs in a simplified view and links back to this page as its source.

The embedded tool has a fixed layout; you can adjust the height value to fit your site. No ads or personal data, runs entirely client-side.

Car depreciation terms glossary

Short definitions of the core terms used in vehicle valuation.

DepreciationThe gradual decline in a vehicle's value over time due to age, wear, mileage, and market factors.
Residual valueThe estimated worth of a vehicle at a specific future point, commonly used to structure lease payments.
Trade-in valueThe typically lower amount a dealership offers for your vehicle toward the purchase of another car.
Private-party valueWhat you could reasonably expect selling directly to another individual — usually higher than a trade-in offer.
Retail (dealer) valueThe price a dealership would charge for a comparable used vehicle on their lot; typically the highest of the three.
Mileage adjustmentAn increase or decrease applied to a valuation based on whether mileage is above or below average for the vehicle's age.
Total loss thresholdThe point where repair costs exceed a set percentage of a vehicle's value, after which an insurer declares it a total loss.
Certified Pre-Owned (CPO) premiumThe extra amount buyers often pay for a used vehicle backed by a manufacturer-certified inspection and extended warranty.

In-depth guides

Worked examples and explanations for the most common depreciation questions.

Worked example: a $35,000 car after 5 years

Step 1: Year one applies the steepest drop — for an average sedan, about 23.5% — leaving roughly 76.5% of the original value ($26,775).
Step 2: Years two through five each apply a smaller, roughly 15% annual decline, compounding on the remaining balance rather than the original price.
Step 3: By year five, the car retains an estimated ~40% of its original value — about $14,000 — a total loss of roughly 60%. Enter $35,000 and 5 years into the "Current value" tab above to see this exact result, broken down year by year.

How the future value projection works

The "Future value" mode does not assume your car matches the theoretical curve exactly — real cars deviate from the average due to mileage and condition. Instead, it takes your actual current value and current age, finds where that age sits on the modeled curve, and scales your value forward by the same ratio the curve would drop over the years you specify: Future value = Current value × [Retention(age + years) ÷ Retention(age)].

This keeps your real starting point intact while still applying a realistic, declining-percentage rate of future loss — rather than forcing your car back onto an idealized price curve.

Why two nearly identical cars can have very different resale value

Two cars of the same make, model, and age can differ by thousands of dollars once you account for mileage (a car with 40,000 miles at 5 years old is worth more than one with 90,000), accident history (even a fully repaired accident typically reduces resale value), color and trim (popular colors and well-equipped trims sell faster and for more), and local demand (a truck may be worth more in a rural market than a dense city).

This calculator's curve reflects an average vehicle in average condition with average mileage for its age — treat the result as a starting point, then adjust based on how your specific vehicle compares.

How "Find original price" reverse-solves a car's MSRP

The "Find original price" mode runs the standard formula backwards: instead of Current value = Original price × Retention(age), it rearranges to Original price = Current price ÷ Retention(age). Enter a $14,000 asking price on a 5-year-old average sedan, for example, and the calculator divides by the modeled ~40% retention at year five to imply an original MSRP around $35,000.

This is a rough back-solve, not a lookup — it's most useful when you're browsing used listings without a sticker price and want a quick sense of whether a car started life as an economy model or a loaded higher trim.

Using the Low / Average / High depreciation rate selector

Vehicle type (sedan, truck/SUV, luxury) sets the baseline shape of the curve, but individual brands and models still vary within each category. The depreciation rate selector scales the whole curve up or down: pick Low for a model with a strong reputation for holding value, High for one known to depreciate quickly even within its category, or leave it on Average to use the standard modeled curve.

It's available on all three modes — current value, future value, and find original price — so you can apply the same adjustment consistently across every calculation.

Frequently asked questions

How much value does a new car lose in the first year?
Most new vehicles lose roughly 20% to 30% of their purchase price in the first year alone — the steepest single-year drop in the entire ownership period. This happens because a car shifts from "new" to "used" the moment it's titled and driven off the lot, and manufacturers typically release updated or refreshed models every year.
How much does a car depreciate over 5 years?
On typical US depreciation curves, a car retains only about 35% to 45% of its original value after 5 years — meaning roughly 55% to 65% of the purchase price is gone, with an average commonly cited around 60% total loss by year five. Vehicle type, mileage, and condition all shift this figure up or down.
Do trucks and SUVs hold their value better than sedans?
Generally, yes. Trucks, SUVs, and pickups tend to depreciate somewhat more slowly than sedans and hatchbacks, thanks to steadier demand in the used-vehicle market. The difference is usually a matter of a few percentage points a year rather than a dramatic gap, but it compounds noticeably over 5 to 10 years.
Do luxury and sports cars depreciate faster?
Yes, luxury and performance vehicles typically depreciate faster than mainstream models, often losing value more quickly in the first few years. High new-purchase prices, expensive maintenance, rapid feature/technology turnover, and a smaller pool of buyers for used luxury vehicles all contribute to steeper curves.
What affects a car's real value besides age?
Age and the general depreciation curve only tell part of the story. Actual resale value also depends heavily on mileage (higher-than-average mileage accelerates value loss), condition and accident history, maintenance records, color and trim popularity, local market demand, and the specific make and model's reputation for reliability.
Is this calculator's estimate an exact appraisal?
No. This tool applies a general, declining-percentage depreciation curve modeled on widely observed US used-vehicle market patterns. It is designed to give a realistic ballpark, not a certified appraisal. For an exact value, compare recent local listings for the same make, model, trim, and mileage, or consult a professional appraiser.
How can I reduce how much my car depreciates?
Choosing a vehicle type or brand known for strong resale value, keeping mileage near or below average, maintaining a full service history, keeping the vehicle free of accidents and cosmetic damage, and avoiding heavy customization all help a car hold more of its value over time.
Do electric vehicles depreciate differently than gas-powered cars?
Electric vehicles have historically shown wider swings in depreciation than gasoline vehicles, partly due to rapidly improving battery technology and range, changing incentive programs, and fast-moving competition. Some EV models depreciate faster than comparable gas cars, while strong-demand models can hold value well — the spread is generally larger than for traditional vehicles.
What's the difference between depreciation and trade-in value?
Depreciation describes the general decline in a vehicle's value over time. Trade-in value is the specific, usually lower, price a dealership offers for your vehicle toward the purchase of another car, factoring in reconditioning costs and resale risk. Private-party sale prices and dealer retail prices are typically higher than trade-in offers for the same car.
How can I estimate a used car's original price from its current asking price?
Use the "Find original price" mode above: enter the car's current asking price and its age, and the calculator divides that value by the modeled retention percentage for that age to back into an implied original MSRP. It's a reverse of the standard depreciation formula and works best as a sanity check alongside the listing's actual history.
What does the Low / Average / High depreciation rate option do?
It lets you nudge the whole depreciation curve up or down without changing the vehicle-type category, for cases where you know a specific brand or model resells noticeably better or worse than the typical sedan, truck, or luxury curve. Low assumes slower-than-typical value loss, Average uses the standard modeled curve, and High assumes faster-than-typical value loss.

Methodology & sources

ToolPico's Car Depreciation Calculator is a free, independent tool. It models vehicle value with a declining-percentage curve inspired by widely cited, aggregate US used-vehicle pricing patterns (the kind of year-over-year averages highlighted by outlets such as Carfax and iSeeCars): a steep first-year drop of roughly 20-30%, a further roughly 15-18% per year through year five, and a slower decline afterward. Vehicle type (sedan, truck/SUV, luxury) shifts these rates up or down.

Current value is computed as Purchase price × Retention(age). Future value is computed as Current value × [Retention(age + years) ÷ Retention(age)], which scales your actual current value forward using the same underlying curve rather than assuming your car matches the theoretical price exactly. Results are computed instantly client-side (in your browser); no data is sent to a server.

Basis: A general model of typical US new-car depreciation, not a live pricing feed or VIN-specific valuation. Last updated: July 21, 2026. Results are estimates for informational purposes only and are not a certified appraisal or financial advice; for an exact value, compare recent local listings or consult a professional appraiser.

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