Car Depreciation Calculator
Enter the car value and a depreciation profile. See the value curve year by year — and why depreciation, not gas, is the true cost of a newer car.
| Total depreciation | — |
| Average cost per year | — |
| Cost per month of ownership | — |
The shape of car depreciation
New cars fall hardest at the start: roughly 20% in year one (part of it the moment the title transfers), ~14%/year through year five, then a gentler ~10%. A $35,000 new car is worth about $16,000 at year five — $19,000 of depreciation, ~$316/month, usually more than the fuel and insurance combined.
What this means for buying strategy
- The 2–4 year old sweet spot: someone else paid the steep years; you buy at ~60–70% of new with most of the useful life left.
- Holding long flattens the cost: the same car kept 10 years averages far less depreciation per year than trading every 3.
- Model choice matters more than negotiation: strong-resale brands vs fast-depreciating luxury can differ by $10,000+ over five years on the same purchase price — check the profiles above.
Depreciation is also why loans longer than ~60 months go underwater — compare with the car loan calculator.
Frequently asked questions
How much does a car depreciate per year?
New cars: ~20% the first year, ~14%/year through year five — about 55% gone by year five. Used cars bought after the cliff run 10–15%/year.
What will my $35,000 car be worth in 5 years?
Around $16,000 with a typical new-car curve — roughly $19,000 of depreciation, the single largest cost of owning it.
Which cars hold value best?
Trucks and reliability-reputation brands (historically Toyota, Honda, Porsche) depreciate slowest; luxury sedans and EVs with fast tech cycles depreciate fastest. Check 5-year residual rankings before buying.
How do I beat depreciation?
Buy at 2–4 years old, keep the car 8+ years, choose strong-resale models, and maintain records. You cannot stop the curve — only choose where on it you ride.
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Last updated: 2026-07-08