Vehicle Depreciation

Free Vehicle Depreciation calculator with clear step-by-step results.

About Vehicle Depreciation

Applies a steep first-year drop followed by a lower geometric rate, which matches how vehicles actually lose value - the largest single loss happens the moment the car is registered. Expressing the total per kilometre puts depreciation on the same footing as fuel.

Formulas

Value after n years

Value = price x (1 - first year drop) x (1 - later rate)^(years - 1)

Depreciation per kilometre

Per km = total depreciation / (annual distance x years)

Worked example

With the default values below, Vehicle Depreciation returns Value after the holding period of $13,606.89. Change any input above and every figure here is recalculated in your browser.

Inputs used

Purchase priceminimum 0 $: 35,000 $
First year depreciationaccepts 0–60 %: 22 %
Depreciation in later yearsaccepts 0–40 %: 13 %
Years heldaccepts 1–25: 6
Annual distanceminimum 0 km: 18,000 km

Results

Value after the holding period: $13,606.89
Total depreciation: $21,393.11
Average depreciation per year: $3,565.52
Depreciation per kilometre: $0.1981

Step by step

1Values used
2Value after n years
3Depreciation per kilometre
4Value after the holding period= $13,606.89
5Total depreciation= $21,393.11
6Average depreciation per year= $3,565.52
7Depreciation per kilometre= $0.1981/km

Assumptions and limits

The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why is the first year so much worse?

The new-car premium disappears on registration, and warranty and finance incentives that supported the new price do not transfer. Twenty percent or more is normal.

Which cars depreciate least?

Models with constrained supply, strong reliability records and low option-heavy specification. Buying at two to three years old avoids most of the steepest loss.