Enter the purchase price and age of a vehicle and project its estimated value year by year, using either a flat annual rate or a heavier first year followed by a lower rate.
This is an estimate only. Actual values vary by make, model, condition, mileage and market conditions.
The calculator first works out an estimated current value by applying the chosen model from the purchase price up to the current age, then projects forward for the number of years requested. The flat model applies the same percentage of the remaining value every year. The typical schedule model applies a heavier first-year rate (20% by default) and a lower rate (15% by default) for each later year, reflecting the steep drop most vehicles take when they are first sold; both rates are editable numbers so the model can be matched to a segment or a specific market. All figures are estimates: actual values vary by make, model, condition, mileage, service history and market conditions, and an individual vehicle can sit well above or below any percentage model.
How much does a vehicle typically depreciate? A commonly used planning model is about 20% in the first year and about 15% of the remaining value in each later year, but the spread between models is wide. Desirable models with low mileage lose less; high-mileage or unfashionable ones lose more.
Is this calculator an accurate valuation? No. It is a percentage-model estimate intended for planning, such as comparing keeping a vehicle with replacing it. Actual values vary by make, condition, mileage and market, so a valuation for a sale or purchase should use current listings for comparable vehicles.
Why does the value never reach zero? Percentage depreciation takes a share of the remaining value each year, so the figure falls quickly at first and then levels off. Real vehicles reach a floor set by scrap and parts value, which a percentage model does not capture.