Vehicle Depreciation Calculator
Estimate what your Australian car is worth now and in future years using straight-line, declining-balance or known-value depreciation calculation methods.
Your results
| Year | Estimated value | Total depreciation |
|---|---|---|
| 0 | $40,000.00 | $0.00 |
| 1 | $34,000.00 | $6,000.00 |
| 2 | $28,900.00 | $11,100.00 |
| 3 | $24,565.00 | $15,435.00 |
| 4 | $20,880.25 | $19,119.75 |
| 5 | $17,748.21 | $22,251.79 |
| 6 | $15,085.98 | $24,914.02 |
| 7 | $12,823.08 | $27,176.92 |
| 8 | $10,899.62 | $29,100.38 |
Calculation breakdown
- Method
- Value = $40,000.00 × (1 − 15%)^5 = $17,748.21
- Projected future value
- Value at age 8 years = $10,899.62
Assumptions
- Depreciation is modelled smoothly; real resale values depend on condition, mileage, market demand and model.
- Declining balance applies a constant percentage reduction to the previous year's value.
- Straight line depreciation never reduces the value below the residual value entered.
- The known-value method backs out an implied constant annual rate from your two data points.
How this calculator works
Straight-line spreads the loss evenly across a useful life. Declining balance applies a fixed percentage to the falling value each year, which better matches how cars actually lose value. Known-value mode derives the implied annual rate from what your car is worth today.
Frequently asked questions
How fast do cars depreciate in Australia?
Commonly around 15% a year, with the steepest loss in the first year after purchase.
Which mode should I use?
Declining balance for a realistic resale estimate; straight-line if you are mirroring a simple accounting schedule.
Is this the ATO depreciation rate?
No. Tax depreciation for business vehicles follows separate ATO rules and car cost limits.
Results are estimates only and are not financial, tax, legal or credit advice.