Method
How to calculate estimated vehicle value
This declining-balance model applies depreciation to the previous year’s value, not repeatedly to the original price.
FORMULAFuture value = purchase price × (1 − annual rate)ʸᵉᵃʳˢ
Worked example
Car depreciation calculator example
A $42,000 vehicle declining 15% annually retains 85% of the previous year’s modeled value.
Change one assumption at a time to see what drives the result. The output is an estimate, not a quote, forecast or recommendation.
FAQ
Car depreciation calculator FAQ
Do cars depreciate at a constant rate?
Usually not. Age, mileage, condition, demand and model changes can make depreciation uneven.
Is resale value guaranteed?
No. This is a scenario based on the entered rate, not a market quote.
Should taxes and fees be included in purchase price?
Include them only if you want to measure value loss against total acquisition outlay.