Car Depreciation Calculator
Project a car's resale value year by year using a declining balance depreciation rate, and see the total value lost over your ownership period.
Your results
| Year | Estimated value | Depreciation |
|---|---|---|
| 1 | $34,000.00 | $6,000.00 |
| 2 | $28,900.00 | $5,100.00 |
| 3 | $24,565.00 | $4,335.00 |
| 4 | $20,880.25 | $3,684.75 |
| 5 | $17,748.21 | $3,132.04 |
Calculation breakdown
- Each year's depreciation
- Value(y) = Value(y-1) − Value(y-1) × rate
- Total depreciation
- $40,000.00 − $17,748.21 = $22,251.79
Assumptions
- Depreciation is modelled as a constant declining-balance percentage each year.
- First-year extra depreciation only applies in year one, on top of the standard annual rate.
- Real resale values depend on condition, mileage, market demand and specific model — treat this as an estimate.
Results are estimates only and are not financial, tax, legal or credit advice.
How this calculator works
Enter the purchase price, an annual depreciation rate and the number of years you plan to keep the car. The calculator builds a year-by-year schedule of written-down value, annual loss and cumulative depreciation so you can compare holding periods.
Frequently asked questions
What depreciation rate is realistic?
Most mainstream cars lose roughly 15–20% of their value each year, with the steepest fall in the first year. Popular utes and hybrids often hold value better.
Is this the same as tax depreciation?
No. Tax depreciation for business use follows ATO methods and cost limits. This is a market-value estimate.
Does mileage affect the result?
Indirectly. High annual kilometres usually justify a higher depreciation rate than the default.
Results are estimates only and are not financial, tax, legal or credit advice.