Car Depreciation Calculator

Purchase price

Years of ownership

First-year loss, %

Loss each later year, %

Mileage over that time, km

Result

Worth at the end$1,076,004.00
Lost in money$923,996.00
Lost, %46.2%
Loss a year$184,799.00
Loss a month$15,400.00
Loss per kilometre12.32

The largest line in the budget

Works out what a car will be worth after a given number of years and turns the loss into figures you can compare: per month and per kilometre.

Owners count fuel and insurance, but the real money disappears quietly: a new car loses a fifth of its price in the first year and close to half over five. Against that, the difference in fuel consumption between two models looks like small change.

The curve is uneven. The steepest drop is the first year — driving off the forecourt and the first entry in the logbook. After that it flattens to roughly ten percent a year, which is why a three-year-old car costs noticeably less per month of ownership than a new one.

What this calculator shows

What the car will be worth after the period you enter
The loss in money, as a percentage, per month and per year
The cost of that loss per kilometre driven

What to keep in mind

The defaults are 18 percent for the first year and 10 for each one after — an average across the mass market.
Condition, accident history and model-specific demand are not modelled: a car people want holds value considerably better than the average.

FAQs

How much does a new car lose in the first year?

15 to 20 percent in the mass market and up to 25 at the premium end. A good part of it happens the moment the car stops being legally new.

When is the best time to buy?

Usually at three or four years old: the steep part of the curve has been paid for by someone else and the major components still have life in them.

What else goes into cost of ownership?

Fuel, insurance, tax, tyres, servicing and repairs. Depreciation is normally larger than any one of them on its own.

Which cars hold value best?

Mass-market models with strong used demand, simple engines and cheap servicing. Premium cars with expensive drivetrains and unusual specifications fall fastest.

Worked example

A new car at two million

Input: 2,000,000, 5 years, 18% then 10%, 75,000 km

Output: 1,076,004 left, 924,000 gone

Note: That is 15,400 a month and 12.3 per kilometre — more than the fuel for the same kilometre. Depreciation almost always beats fuel, and it stays invisible until you try to sell.

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Car Depreciation Calculator

Result

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