View Year-by-Year Depreciation Schedule
| Elapsed Time | Starting Value | Period Loss | Ending Value | Value Retained |
|---|
How Car Depreciation Is Modeled
The constant-rate model applies the selected depreciation percentage to the vehicle's remaining value each year. A $40,000 vehicle depreciating 15% annually is therefore modeled at $34,000 after one year, then $28,900 after two years. It does not subtract the same $6,000 every year.
The two-stage model lets you use one depreciation assumption for the first year and another for later years. This can better illustrate the common pattern in which a new vehicle loses value faster early in ownership, but it is still only a scenario, not a vehicle-specific appraisal.
What Real Market Data Says in 2026
Kelley Blue Book's 2026 Best Resale Value research says an average 2026 model-year vehicle is projected to retain about 45% of original value after five years, while its top resale-value models are projected around 55% or more. That is a market-level reference, not a universal rate for every car.
Edmunds' Q1 2026 used-car analysis found 3-year-old vehicles retaining about 66% of original MSRP on average. Its Q2 2026 analysis also shows how strongly used-car price, age, mileage and brand interact in the current market.
Market context: Kelley Blue Book 2026 Best Resale Value, Edmunds Q1 2026 Used Car Report, and Edmunds Q2 2026 Used Car Report.
Mileage, Condition and Location Matter
A percentage-only calculator cannot know whether your specific car has 15,000 or 90,000 miles, a clean history or accident damage, excellent or rough condition, or unusually strong local demand. Edmunds says its appraisal process considers factors including year, make, model, trim, mileage, features, condition, location and recent transaction data.
Recent Edmunds data also shows mileage materially affecting discounts even among current-model-year used vehicles. That is why this page does not invent a universal “$0.10 per extra mile” adjustment or claim that a condition dropdown can produce an appraisal-grade price.
Car Depreciation FAQ
How much does a car depreciate in five years?
There is no single percentage for every vehicle. KBB's 2026 market-level projection says an average 2026 model-year vehicle retains about 45% of original value after five years, but make, model, mileage, condition and market demand can produce substantially different results.
Does a car lose the same percentage every year?
Not necessarily. Depreciation is often steeper when a vehicle is newer and can slow as it ages. The two-stage mode lets you model a different first-year rate and later-year rate.
Should I enter MSRP, purchase price or current value?
If you are projecting a newly purchased vehicle from today, purchase price or a relevant current market value can be useful. If the vehicle is already used, a current appraisal is generally a better starting point than its old MSRP.
How does mileage affect depreciation?
Mileage is one of the factors buyers and appraisal systems use to value a used vehicle. Its dollar effect is not universal because it interacts with vehicle age, model, condition, market and mileage milestones.
Is this the same as tax depreciation?
No. This calculator estimates market-value depreciation. Tax depreciation, business-use basis rules and the IRS standard mileage method are separate tax concepts and should not be inferred from this projection.