Car Depreciation Calculator
Estimate a car's value after depreciation over time.
Estimated future value
£12,282.50
- Estimated value lost
- £7,717.50
Illustrative estimate using compound depreciation; actual resale values vary by vehicle, mileage and condition.
v1.0 · Reviewed September 2026
How this is worked out
The value is multiplied by (1 − rate) once for each year, so depreciation compounds on the reducing value.
Worked example
- £20,000 today
- 15% a year
- 3 years
20,000 × 0.85³
£12,282.50, a loss of £7,717.50
Assumptions and limits
- One flat annual rate. In reality a new car loses a disproportionate share in its first year, then depreciates more slowly.
- Ignores mileage, condition, service history, model changes and fuel-type shifts, all of which move resale values considerably.
- Illustrative only, not a valuation.