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Car Depreciation Calculator
See How Much Your Car Will Depreciate
Enter the vehicle's price and how many years you plan to own it to see an estimated year-by-year value schedule.How Car Depreciation Works
Depreciation is simply the loss in a vehicle's value over time, and it's usually the single biggest cost of owning a car — bigger than fuel, insurance, or maintenance for most owners. Most vehicles lose around 20% of their value in the first year alone, largely because buyers pay a premium for a brand-new, zero-kilometre car that disappears the moment it's driven off the lot. After that first year, depreciation typically slows to roughly 15% of the remaining value per year, though the exact pace depends heavily on the make, model, mileage, condition, and how in-demand that vehicle is on the resale market.
This calculator applies those typical industry rates to your vehicle's price to build a simple year-by-year estimate. It won't be exact for every vehicle — a Honda Civic and a luxury sedan can depreciate at very different rates — but it gives you a realistic starting point for budgeting and comparing ownership costs.
What Affects How Fast a Car Depreciates
Brand & Model Reputation
Vehicles known for reliability, like many Toyota and Honda models, tend to hold their value better than brands with a reputation for costly repairs.
Mileage
Higher mileage means more wear, which lowers resale value faster than the calendar alone would suggest.
Condition & Accident History
A clean history report and well-maintained interior/exterior can meaningfully soften depreciation.
Market Demand
Popular vehicle types, like compact SUVs in Canada, tend to depreciate more slowly than niche models, and demand can shift with fuel prices and trends.
Vehicle Type
Electric vehicles have historically depreciated faster than gas vehicles in the first few years, though this varies by model.
Why Depreciation Matters When Financing or Leasing
If you finance a vehicle with a small down payment over a long term, it's possible to owe more on the loan than the car is worth for a stretch of time — often called being "underwater" or "upside down" on a loan. Understanding your vehicle's depreciation curve helps you choose a term and down payment that avoid this. Try our car loan calculator to see how different terms and down payments affect your monthly payment.
Leasing works differently: the leasing company absorbs most of the depreciation risk, since you're only paying for the value the car is expected to lose during your lease term (the difference between its price and its residual value). That's why leasing often means a lower monthly payment on the same vehicle. See what that could look like with our car lease calculator.
Frequently Asked Questions
Why do cars depreciate faster in the first year?
Does financing longer make depreciation worse?
Do electric vehicles depreciate faster than gas vehicles?
How can I slow down my car's depreciation?
Should I lease if I don't want to deal with depreciation?
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