Vehicle Depreciation Calculator

Vehicle depreciation calculator for estimating current resale value

Most people searching for a vehicle depreciation calculator want one answer: a fast, reasonable estimate of what their car is worth today after a few years of ownership. This tool is built for that exact use case. You enter the original purchase price and the vehicle’s age, and you get an estimated current value plus a clear depreciation breakdown. If you know the mileage, you can refine the estimate with a simple adjustment for driving more or less than typical.

This calculator uses a common real-world approach: percentage-based depreciation each year (a declining-balance model). That matches how market value typically behaves, where the value drops quickly early on and the same percentage decline applies to a smaller base over time. The output is not a formal appraisal. It is a structured estimate designed to help you make a decision like setting an asking price, sanity-checking a trade-in offer, or understanding how quickly your vehicle value is declining.

To use it quickly, enter the purchase price and age in years, then click Calculate. If you want a more tailored estimate, open the Advanced section. You can set the annual depreciation rate (the default is 15% per year), enter your current mileage, and choose what you consider “normal” annual mileage. If your mileage is higher than expected for the age, the calculator applies a small penalty to the value. If your mileage is lower than expected, it applies a small bonus. A minimum residual value setting prevents the estimate from falling unrealistically close to zero for older vehicles.

Assumptions and how to use this calculator

• The default annual depreciation rate is 15% per year, which is a broad, practical average for many mainstream vehicles. Adjust it if your market segment depreciates faster or slower.
• Depreciation is applied as a percentage each year (declining balance). This is an estimate of market value erosion, not an accounting schedule.
• If you provide mileage, the calculator compares it to expected mileage (default 15,000 km/year). The difference drives a value adjustment, not a mechanical wear forecast.
• The mileage adjustment is linear by default (0.20% per 1,000 km over or under expected). This is a simple proxy for buyer perception, not a model of maintenance history.
• A minimum residual value (default 10% of purchase price) is enforced to avoid unrealistic outputs for older ages, but it may still overestimate severely damaged or poorly maintained vehicles.

Common questions

Is this the same as a trade-in or dealer appraisal?

No. A dealer appraisal can include brand-specific demand, reconditioning costs, auction prices, and the dealer’s margin. This calculator gives a structured estimate based on age, an annual depreciation rate, and optional mileage. Use it to sanity-check offers and set a realistic starting point, not as a guaranteed price.

What annual depreciation rate should I use?

If you do not know, start with the default 15%. If you want to be stricter, use 18% to 22% for faster-depreciating vehicles. If your vehicle is in a segment that holds value well, try 10% to 12%. The “right” rate depends on brand, model, condition, market demand, and local pricing, but a single rate is still useful for a quick estimate.

Why does mileage change the estimate at all?

Because buyers use mileage as a shorthand for wear and future maintenance risk. Two vehicles of the same age can have meaningfully different resale values if one has far higher mileage. The mileage adjustment here is intentionally small and simple. It is meant to refine the estimate, not to dominate it.

What if I do not know my purchase price or exact age?

Use your best estimate. If you bought used, the “purchase price” should be what you paid at the time you bought it, not the original new price. For age, use years since the purchase date for a personal value estimate, or use years since first registration if you want a broader market-age estimate. Keep it consistent with what you are trying to measure.

When is this calculator not a good fit?

This tool is not designed for rare collectibles, heavily modified vehicles, or vehicles with major accident damage, flood history, or severe mechanical problems. In those cases, a single depreciation rate and mileage adjustment can be misleading. You should use a market-based comparison from recent listings or an appraisal method that accounts for condition and buyer niche.