Cars lose value fastest early on. See what yours may be worth down the road.
A vehicle depreciation calculator projects what a car will be worth over time, applying a larger first-year drop followed by a steadier annual decline.
New cars lose value fastest the moment they're driven off the lot and through the first year, often around 20%, then depreciate more gradually. This front-loaded curve is why buying a one- or two-year-old used car can capture much of a vehicle's useful life after someone else has absorbed the steepest drop.
Depreciation is usually the single largest cost of owning a car, bigger than fuel or maintenance, yet it's invisible because you don't write a check for it. Projecting the future value helps you see the real cost of ownership, decide when to sell, and understand why gap insurance matters when a new car can be worth less than its loan.
Often around 20% in the first year, then a steadier rate after. Most vehicles lose roughly half their value within five years.
It's a large, silent loss of value that usually exceeds fuel and maintenance combined, you just never write a check for it.
Buy slightly used to skip the first-year cliff, choose models that hold value, keep mileage and wear reasonable, and maintain the car well.
See the exact formula and a worked example on our methodology page.