Free Depreciation Cost calculator with clear step-by-step results.
Depreciation is usually the single largest cost of owning a vehicle and the one that never appears on a receipt. It is simply what you paid minus what you get back, spread over the time you own the asset. Expressing it monthly makes it comparable with a lease payment, and per kilometre makes it comparable with fuel — on a typical car it is often two to three times the fuel cost per kilometre.
Total loss in value
Total depreciation = purchase price − expected resale value
Rates
Per year = total ÷ years; per km = per year ÷ annual distance
Resale values depend on model, condition, mileage and market timing. Tax depreciation follows statutory rules that differ from this economic estimate — consult a tax professional for any tax or accounting purpose.
Straight line spreads the loss evenly and is the right basis for budgeting a known holding period. Real cars lose value fastest in the first two to three years, so if you plan to sell early, use a shorter period and a lower resale figure rather than a different curve.
Look up current asking prices for the same model at the age and mileage you expect to sell at. That observed figure is far more reliable than a percentage rule of thumb.
No. Tax depreciation follows prescribed rates, classes and caps set by your tax authority, and often differs substantially from economic loss in value.