Car Depreciation Calculator

What this calculator does

Model a vehicle's future value with a user-entered constant annual declining-balance rate; this is not a market quote or tax schedule.

Scope, period, and currency

This page runs a local formula from user-entered values. The country/currency selector changes money symbols and formatting only: it does not perform live or historical FX conversion or automatically change contract, tax, accounting, or regulatory rules. Convert all amounts into one currency first and keep periods and metric definitions consistent.

Formula variables

P

Starting vehicle value.

d

Annual depreciation rate from 0% to 100%.

t

Positive elapsed years.

Formula and worked example

Formula: Modeled value = P × (1 − d)^t; accumulated depreciation = P − modeled value.

Recalculation: $36,000 × (1 − 15%)^5 = $15,973.39 modeled value; accumulated depreciation = $20,026.61.

Model assumptions

• One constant percentage applies every year.
• Condition, mileage, model demand, accidents, and transaction costs are excluded.
• The model is neither an appraisal nor a tax depreciation method.

Reading the result and model boundary

• Use the value for scenario comparison, then compare it with current market evidence.
• Rates above 100% or nonpositive years are invalid inputs.

This is a constant-rate mathematical scenario, not a valuation, offer, or tax calculation.

How to use it

1. Enter starting value, an annual rate between 0% and 100%, and positive years.
2. Calculate the declining-balance scenario.
3. Compare with current vehicle-market and tax guidance where relevant.

Common incorrect uses

• Treating the modeled value as a guaranteed resale price.
• Entering a depreciation rate above 100%.
• Using the model as a tax depreciation schedule.

Suggested verification workflow

1. Set a documented rate scenario.
2. Calculate future value.
3. Compare with condition-specific market evidence.

FAQ

Method and review boundary

Results are calculated locally in the browser from the formula shown on this page. The tool does not retrieve live rates, quotes, approvals, or billing data. Last reviewed: July 24, 2026.

Use the result for first-pass estimates, scenario comparison, and question preparation; it is not financial, investment, tax, accounting, or legal advice.

Authoritative sources and notes

• Car depreciation information - Kelley Blue Book
• Publication 946: How to Depreciate Property - Internal Revenue Service

Sources checked July 24, 2026. Rates, product rules, and official guidance can change; verify them again before a formal decision.