Auto Depreciation Calculator

Explore how a vehicle value changes when it loses the same percentage each year. You choose the starting price, depreciation assumption and number of months.

Enter your values to see an estimate. Enter 0 for amounts that do not apply.

How this calculator works

Terminal value equals purchase price multiplied by (1 minus annual depreciation percentage) raised to months divided by 12. Total depreciation is starting price minus terminal value.

Worked example

A vehicle starting at 40,000 with assumed annual depreciation of 20% has a modeled value of 25,600 after 24 months, a decline of 14,400.

Assumptions and limits

This constant-percentage model is not a resale appraisal. Mileage, age, condition, market demand, taxes and transaction charges are not modeled. A 100% annual loss produces a zero value at any positive horizon.

How to choose your inputs

Choose a starting vehicle value appropriate to your decision: purchase price for a purchase scenario, or current resale value for a forward-looking ownership scenario. Supply a depreciation assumption rather than treating this form as a make-and-model price database. Use the same valuation basis when comparing rates or horizons.

How to interpret your result

The result is the endpoint of a constant-percentage scenario, not an offer a buyer will make. Compare it with any remaining loan balance separately to explore possible equity, and vary the assumption before relying on sale proceeds. Actual wear, mileage, condition and market changes can produce a different path from the smooth curve.

Primary references

FTC: Financing or leasing a car

This educational estimate uses your inputs. It is not individualized financial, tax, insurance, or investment advice, a lender offer, approval decision, or a promise of future results.

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