Depreciation Calculator
Estimate your vehicle's future resale value based on historical depreciation curves — make smarter buy, sell and upgrade decisions.
Vehicle Resale Depreciation Calculator
Estimate future market resale valuation across years.
What is the Depreciation Calculator?
The Vehicle Depreciation Calculator estimates the current or future market value of your vehicle based on its original purchase price and age. It uses a 15% annual depreciation rate — the widely accepted industry benchmark for mainstream passenger vehicles — applied using a compound reducing-balance model.
Understanding depreciation is critical when deciding when to sell, whether to upgrade, how much to insure a vehicle for, or how to evaluate the true cost of vehicle ownership over time. This tool puts that calculation in your hands in seconds.
Why use our Depreciation Calculator?
Compound Depreciation Model
Uses the reducing-balance (compound) method — Value = Price × 0.85^Years — which closely mirrors real-world vehicle value loss patterns over time.
Instant Live Results
Adjust the purchase price or vehicle age and the estimated resale value updates immediately — making scenario comparisons effortless.
Buy & Sell Decision Support
See how much value you will lose over 1, 3, 5 or 10 years. Use this to choose the optimal time to sell before depreciation accelerates.
Insurance Valuation Reference
Use the depreciated value estimate as a reference when reviewing your comprehensive insurance policy's agreed or market value clause.
Total Cost of Ownership Insight
Depreciation is typically the largest single cost of owning a vehicle. Quantifying it helps you make better-informed purchase decisions from the start.
Fleet Valuation Planning
Fleet managers can model asset values across different ages to plan replacement cycles, budget for residuals, and report fleet book values accurately.
Estimate vehicle value in 2 steps
Enter the Original Purchase Price
Enter the on-road purchase price of the vehicle when it was new. This should be the total price paid including registration, taxes and any mandatory dealer charges — not just the ex-showroom price.
Set the Vehicle Age
Enter how many years old the vehicle currently is, or how old it will be at the point you want to estimate the value for. The calculator will apply the 15% per year compound depreciation curve and show the estimated residual value.
Frequently Asked Questions
15% per year using the reducing-balance method is the widely accepted standard depreciation rate for mainstream passenger vehicles. Luxury, sports, and rare vehicles may depreciate faster or slower. For specialist vehicles, consult a valuation professional.
Most new cars lose 15–25% of their value in the first year alone — primarily because the "new" premium disappears the moment the car is registered. Enter Age = 1 in the tool to see the estimated first-year value loss for any purchase price.
Yes significantly. The tool uses a time-based depreciation model which does not account for mileage. High-mileage vehicles typically depreciate faster than the standard rate. Low-mileage, well-maintained vehicles often depreciate more slowly.
Yes. Compare the estimated value now versus in 1, 2 or 3 years. The rate of loss slows down as the car ages — depreciation is highest in the early years. For most vehicles, selling between years 3–5 balances value received against ongoing depreciation loss.
Yes. Japanese and Korean brands typically hold value better than European luxury brands. Mainstream models in popular segments depreciate at rates close to the 15% benchmark used here. Rare or in-demand models can actually appreciate.
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