Vehicle Depreciation Calculator
Estimate an Australian car's current and future value using straight-line, declining-balance or known-value depreciation. Free with no signup.
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.
Choose a vehicle depreciation method
Declining-balance depreciation applies a percentage to the vehicle's remaining value each year, producing larger dollar losses near the start. Straight-line depreciation spreads a fixed dollar loss evenly across the useful life entered.
Known-value mode works backwards from the purchase price, current value and vehicle age to estimate an implied annual depreciation rate. You can then use that rate to project a future value under the same mathematical pattern.
- Use declining balance for a percentage-based resale estimate
- Use straight line for an even annual dollar reduction
- Use known value to derive the historical annualised rate
Market value and tax depreciation are different
A car's market value depends on kilometres, condition, service history, make, model, location and buyer demand. An online estimate cannot replace current comparable listings, an inspection or a professional valuation.
Business tax depreciation follows separate ATO rules, effective-life choices and cost limits. This calculator estimates mathematical value changes only and should not be used as a depreciation schedule for a tax return or business accounts.
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.