Vehicle Depreciation Calculator
Estimate a car’s future value using your first-year and later annual loss assumptions. Compare the projection with actual listings for the same model, mileage and condition.
Verify this calculatorVerified
See what the result uses—and what it cannot know.
Sumvoro calculates deterministically from the visible inputs. It does not invent lender terms, local rules, market values, medical facts, or professional judgments.
- 1 · InputsCheck every entered value against the latest statement, quote, measurement, or official source.
- 2 · Formula
After year one: value = purchase value × (1 − first-year rate). Each later full year multiplies the previous value by (1 − later annual rate). Value loss = starting value − projected value. - 3 · SensitivityUse Insights to run a lower and higher case. If the conclusion changes easily, collect better information or leave more margin.
- 4 · ScopeThis tool is maintained and covered by automated calculation tests. Provider timing, rounding, and omitted facts can still change a real-world result.
- Formula release
- 2026.10-r4
- Release date
- October 10, 2026
- Review status
- Verified
- Source review
- September 12, 2026
Car Depreciation calculator
Vehicle depreciation is rarely constant. Model first-year loss separately, compound later annual loss, and compare the estimate with real market listings.
- Use model-specific resale observations.
- Adjust for mileage, condition, trim, and demand.
- Compare value with the future loan balance.
Optional readingLearn how this calculator works
How the vehicle depreciation calculator works
Estimate a car’s future value using your first-year and later annual loss assumptions. Compare the projection with actual listings for the same model, mileage and condition.
After year one: value = purchase value × (1 − first-year rate). Each later full year multiplies the previous value by (1 − later annual rate). Value loss = starting value − projected value.
Read our calculation methodology and limitations.
Example
A $40,000 vehicle losing 20% in year one and 10% in each of the next two years is projected at $25,920: $40,000 × 0.80 × 0.90 × 0.90. That is $14,080 lost, not the $16,000 that adding the percentages would suggest.
How do you calculate car depreciation over three years?
- Starting vehicle value
- $40,000
- First-year loss
- 20%
- Later annual loss
- 10%
- Ownership period
- 3 years
- Modeled future value
- $25,920.00
- Modeled value loss
- $14,080.00
- Value retained
- 64.8%
The first year leaves $32,000; two later 10% reductions apply to the remaining value, producing $25,920. These chosen percentages are not a forecast or appraisal.
What affects the result
- Rates compound on the remaining value, not repeatedly on the original price.
- Use a starting value consistent with the vehicle’s age; do not apply a new-car first-year loss to an already-depreciated value without intending to.
- Resale proceeds can differ from advertised prices; condition, mileage and transaction costs matter.
Helpful guides
Frequently asked questions
Is this a resale quote?
No. It is a scenario using entered rates, not a market valuation or guaranteed offer.
Does depreciation reduce my loan balance?
No. Loan repayment and resale value follow separate paths. Compare projected value with your remaining payoff to estimate equity.
Should I add depreciation to my monthly loan payment?
Not when calculating cash spending. For an economic-cost comparison, count value loss and financing interest rather than adding depreciation to all principal repayments.