Car Depreciation Calculator
Estimate your car's current value after a given number of years, using a declining-balance depreciation rate.
- Free to use
- No registration required
- Works on all devices
- Last updated
- 13-09-2026
Your result
₹4,43,705.31
Estimated current value
AI explanation
Formula
Current value = purchase price × (1 − depreciation rate)^years (declining-balance method)Worked example
₹10,00,000 car, 15%/year, after 5 years
| Field | Value |
|---|---|
| Purchase price (on-road) | ₹10,00,000 |
| Annual depreciation rate | 15 |
| Years since purchase | 5 |
| Estimated current value | ₹4,43,705.31 |
| Total depreciation | ₹5,56,294.69 |
Assumptions
- Uses a constant annual depreciation rate throughout — real depreciation is often steepest in year 1 (as much as 20-25%) and gradually slows in later years.
- Provides an estimate only — actual resale value depends heavily on brand, model, condition, mileage, market demand, and accident history.
Frequently asked questions
Why do cars lose so much value in the first year?
A new car is legally considered "used" the moment it's registered, and buyers typically pay a premium for a brand-new, unregistered vehicle — this first-year drop (often 15-25%) is usually the steepest of any single year.
Does this account for mileage or condition?
No — it applies a flat annual rate regardless of usage. High mileage, accident history, or poor maintenance will reduce actual resale value below this estimate; excellent condition and low mileage can push it above.
How can I get a more accurate resale value?
Check current listings for similar make, model, year, and mileage on a used-car marketplace, or get a valuation from a used-car dealer/inspection service for the most accurate figure.
Does this work for bikes, trucks, and commercial vehicles too?
Yes — the declining-balance formula applies to any vehicle type; just adjust the annual depreciation rate to match typical rates for your vehicle category.
What depreciation rate should I use for a commercial vehicle?
Commercial vehicles often depreciate faster than personal vehicles due to higher usage — check industry benchmarks or your accountant's depreciation schedule for a more accurate rate.