Car Depreciation Calculator
Calculate car depreciation by make, model, and year. See 5-year depreciation curve and which vehicles hold value best.
Quick Take
This calculator gives you real-time estimates based on standard financial formulas. Modify any input and results update instantly — no calculate button needed.
Primary Result
Value After Year 1
What This Calculator Does
Calculate car depreciation by make, model, and year. See 5-year depreciation curve and which vehicles hold value best.
How the Calculation Works
Who Should Use This Tool
This calculator is designed for anyone looking to understand the financial implications of used car decisions. Whether you're a first-time buyer, comparing options, or planning for the future, these estimates help you make informed choices.
Important Considerations
Remember that actual terms, rates, and costs will vary by lender, your credit score, and current market conditions. These calculators provide educational estimates only and do not constitute professional financial advice. Always compare multiple offers and consult a financial professional before making decisions.
Car Depreciation Calculator: How Much Your Vehicle Loses in 2026
A new car loses 20 to 30 percent of its value in the first year — usually the single biggest year-over-year hit it will ever take. By year five, the average vehicle has shed 55 to 65 percent of its original sticker price. This 2026 car depreciation calculator projects the depreciation curve over 1 to 10 years by vehicle class, annual mileage, and condition, using residual data published by Edmunds and Kelley Blue Book. No signup required, all calculations run in your browser.
The first-year cliff and why it matters
The moment a new car is titled to a retail buyer, it becomes a "used car" and immediately loses about 9 to 11 percent of its value — that's the gap between retail price and wholesale auction price. By the end of year one, total depreciation typically reaches 20 to 30 percent. Year two adds another 15 percent, and years three through five each subtract 7 to 10 percent. The steepest losses happen before the first oil change, which is why buying a 2- to 3-year-old used vehicle is one of the best-known value plays in car ownership: someone else ate the first-year cliff.
Which vehicles hold value best (and worst) in 2026
According to Kelley Blue Book's 2026 Best Resale Value awards, the vehicles that hold value best are almost all body-on-frame trucks and SUVs: Toyota Tacoma and Tundra, Jeep Wrangler and Gladiator, Toyota 4Runner, and Porsche 911 routinely retain 55 to 70 percent of their value after 5 years. At the other end, luxury sedans depreciate fastest — the BMW 7 Series, Mercedes-Benz S-Class, Maserati Ghibli, and Audi A8 all lose 65 to 75 percent over 5 years, largely because their first owners pay a premium for the badge and the second owner won't. EVs are a mixed bag: Teslas have stabilized around 50 percent 5-year residual, while early-generation Nissan Leafs and BMW i3s still drop 70 percent or more.
Mileage, condition, and the 100,000-mile psychological wall
Every additional 12,000 miles per year above the 13,000-mile national average shaves roughly 5 percent off residual value. Low-mileage cars (under 10,000 miles per year) command a 10 to 15 percent premium; high-mileage cars (over 18,000 miles per year) lose 10 to 20 percent. The biggest single psychological wall is 100,000 miles — crossing it typically triggers a 10 to 15 percent drop on its own, because many buyers assume major repairs are imminent even though modern vehicles routinely run 200,000+ miles with basic maintenance. Condition matters too: an "excellent" condition car commands roughly 10 percent more than "average" at trade-in.
How we model the curve
The depreciation curves in this calculator are blended from Edmunds True Cost to Own data, Kelley Blue Book 5-Year Cost to Own awards, and iSeeCars depreciation studies. Each vehicle class (compact, SUV, truck, luxury, EV) has its own curve shape — luxury cars drop hardest in years 1-3, trucks flatten out after year 3, EVs have a steeper year-1 drop thanks to the federal tax credit's effect on used pricing. Mileage adjustments follow the 12,000-mile baseline; condition adjustments follow KBB's condition-grade premium table.
Data sources & 2026 update
Depreciation benchmarks reflect Kelley Blue Book 2026 Best Resale Value awards, Edmunds True Cost to Own 2026 data, and the iSeeCars 2025 longest-lasting cars study. Class-average residual percentages are weighted by 2025-2026 model year sales mix from the National Automobile Dealers Association (NADA) Used Car Guide. Mileage and condition adjustments follow KBB's condition-grade matrix. Results are estimates for planning only — actual resale value depends on local market conditions, vehicle history, and color. This page was last reviewed on August 4, 2026.
Last updated: August 2026. This guide is for educational purposes only and does not constitute financial advice. Actual loan terms vary by lender, credit profile, and market conditions.
How the math works
Depreciation is the loss from a car's purchase price to its resale value over time. Industry studies (e.g., iSeeCars) show the average new car loses roughly 20% of its value in year one and about 60% over five years, though figures vary widely by model and condition.
How to use this calculator
- Enter the original purchase price (MSRP or real invoice).
- Pick a depreciation model or enter a real annual rate from a published study for your model.
- Set the number of years and read the estimated resale value and total loss.
- Cross-check the result against KBB/Edmunds listings for your specific trim.
Sources & authoritative references
The definitions, formulas, and benchmarks behind this tool are drawn from the public, primary sources listed below. We do not cite figures we cannot verify.
- iSeeCars — Used Car Depreciation Studies — iSeeCars.com
- Kelley Blue Book — Vehicle Values & Pricing — Kelley Blue Book
- Edmunds — Car Buying, Leasing & Value Guides — Edmunds
Frequently Asked Questions
How fast do new cars depreciate?+
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Related Guides
Which Brands Bleed Value Fastest: A Straight Talk on Depreciation
Depreciation is the silent tax on car ownership, and it is not evenly spread. Trucks and certain Japanese nameplates hold value; luxury sedans and some EVs fall hard. Here is who loses and who keeps.
How Long to Keep a Car Before the Value Math Turns
Keep a car too short and you eat depreciation; keep it too long and repairs bite. There is a window where ownership is cheapest, and it is longer than most people think.
The Car Depreciation Curve in 2026: What Your Car Loses Year by Year
A new car sheds roughly 20% the moment it is titled and about 45–55% by year five. The curve is steep early, then flattens — which is exactly why buying at year three and selling before year seven tends to win.