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Vehicle depreciation calculator

Enter the vehicle's current (or starting) value, the expected annual rate of value decline as a percentage, and the ownership period in years. The calculator works out the vehicle's value at the end of the term and the total loss in money and percent.

Depends heavily on make, mileage and market conditions — typically 10–20% a year for mass-market models, higher in year one for some models. Use your own estimate

Result

Value after this period

Value lost
Value lost, %

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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Value after N years = current value × (1 − decline rate ÷ 100)^N. The calculation assumes the value drops by the same percentage each year from an already-reduced base — the same mechanics as compound interest, just with a minus sign, so the value loss isn't linear: in absolute money, the first year loses more than the last.

Real depreciation rates vary a lot between vehicles and aren't captured by one universal number: it depends on make and model, mileage, the new and used car market, and often a sharper drop in the very first year of use — which is why the decline rate here is an editable field, not a constant.

This calculation is a rough estimate based on a constant rate, not a forecast of a specific market price: for an actual deal, it's better to check the value against current listings for similar vehicles of the same year and mileage.

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