How to calculate the total cost of a loan before you sign
How to calculate what a loan costs in total, how rate, term and fees change it, and how to compare offers using the APR and the Truth in Lending disclosure.
Car depreciation calculator
Estimate your car’s value year by year with an annual depreciation rate and, optionally, a higher first-year rate.
Fix the highlighted fields to see your result.
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Estimated value by year
How it is calculated
Value(year n) = Value(year n−1) × (1 − rate)
Assumptions and limitations
- Constant rate after the first year; in reality it depends on mileage, condition and demand.
- It does not predict market prices.
This tool is educational and provides estimates. It is not a credit offer or financial advice. Actual terms are set by each institution.
Frequently asked questions
How fast do cars depreciate?
It varies a lot by make, model, mileage and market. New cars often lose more value in the first year than in later years. Check real listings or a pricing guide for your model and enter that rate.
How is depreciation calculated here?
With a declining-balance method: each year the car loses a percentage of the value it had at the start of that year, with an optional different rate for the first year.
Why does it matter?
Depreciation is often the biggest cost of owning a car. It also affects whether you could owe more on a loan than the car is worth.