DepCalc

Car Depreciation Calculator

How much is your car worth in 3 years? See the year-by-year depreciation curve.

Purchase price

Annual depreciation rate

Years

Value after 5 years

$15,530

Total depreciation: $19,470
Retained value: 44%

What you entered

Purchase price: $35,000Rate: 15%/yrYears: 5

1
Annual depreciation rate
15%= 0.1500 per year
2
Value after depreciation
$35,000 × (1 − 0.15)^5= $15,530
3
Total depreciation
$35,000 − $15,530= $19,470

Result

Current value: $15,530

A $35,000 vehicle depreciating at 15% per year is worth $15,530 after 5 years — a total loss of $19,470 (56% of the purchase price).

What a car is worth after 1 to 7 years at 15 percent a year

Each row applies a flat 15 percent annual depreciation rate to the purchase price, compounding on the reduced value each year rather than taking a fixed dollar amount off. 15 percent is a middle-of-the-road rate for a mainstream car held past its first year.

Purchase price	After 1 year	After 3 years	After 5 years	After 7 years
$15,000	$12,750	$9,212	$6,656	$4,809
$20,000	$17,000	$12,282	$8,874	$6,412
$25,000	$21,250	$15,353	$11,093	$8,014
$30,000	$25,500	$18,424	$13,311	$9,617
$35,000	$29,750	$21,494	$15,530	$11,220
$45,000	$38,250	$27,636	$19,967	$14,426
$55,000	$46,750	$33,777	$24,404	$17,632
$70,000	$59,500	$42,989	$31,059	$22,440

At 15 percent a year every car retains 44 percent of its price after five years, whatever it cost, because a fixed percentage rate scales. Change the rate and that changes fast: a 35,000 car is worth 20,667 after five years at 10 percent, 15,530 at 15 percent, and only 8,306 at 20 percent. Real depreciation is not flat either. A new car typically drops 20 to 25 percent in year one alone, around 15 percent in year two, then 10 to 12 percent a year after that, which is why a fixed-rate model understates the first-year hit and overstates later losses. Brand, mileage, condition, colour and body style all shift the curve. Illustrative estimates only, not a valuation. Check a real used-value guide for your specific model before pricing a sale or a trade-in.

The steepest drop is year one

A new car loses roughly 20-25% of its value the moment you drive it off the lot, and another 15% in year two. After 5 years, a typical car is worth about 40% of its original price. This is why buying a 2-3 year old certified pre-owned car is often the best value play.

Factors that slow depreciation

Brand reputation (Toyota, Honda hold value), low mileage, desirable colors (white, black, silver), and popular body styles (SUVs > sedans) all slow depreciation. Electric vehicles have been depreciating faster than average due to rapidly improving technology, though this is stabilizing.

Frequently asked questions

I bought my car for $35,000 two years ago — what's it worth now?

At a typical 15% annual depreciation rate, after 2 years it's worth about $25,288 ($35,000 x 0.85 x 0.85). Enter your purchase price and expected depreciation rate above for a year-by-year breakdown.

What's the average annual depreciation rate for a car?

About 15-20% per year for the first few years, then gradually slower. A new car loses roughly 20-25% the first year, 15% the second, and 10-12% annually after that. By year 5, a typical car is worth about 40% of its original price.

Which cars hold their value best?

Toyota, Lexus, and Honda consistently lead in resale value. SUVs and trucks generally depreciate slower than sedans. Specific models like the Toyota Tacoma and Jeep Wrangler are famously depreciation-resistant.

How does this relate to the lease vs buy calculator?

Depreciation is the core of a lease payment — you're paying for the value the car loses during the lease term. This calculator shows the depreciation curve; the lease vs buy calculator compares total cost of both ownership methods.