Car depreciation calculator
Loss in value is often the biggest cost of owning a car. Estimate what yours will be worth each year, and what that costs you a month.
How this is calculated
The value falls by the first-year percentage in year one, then by the later percentage each year after that, each time applied to the value at the start of the year.
The total lost is the price paid less the final value. It is shown a year, a month and per mile.
Real depreciation varies widely by make, model, mileage, condition and demand, so the percentages are your estimate rather than a valuation.
Rates used · 2026/27
| Method | percentage of the value each year |
| Biggest drop | usually the first year or two |
| Per mile | total lost divided by miles driven |
| Valuation | use a valuation service for a real figure |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
A £25,000 car losing 20% in its first year and 15% a year after that is worth about £14,450 after three years. That is £10,550 lost, about £293 a month or 44p a mile at 8,000 miles a year.
Common questions
How much does a car depreciate a year?
It varies a lot. New cars often lose the most in their first year, then less each year. Some models hold their value far better than others.
Do electric cars depreciate faster?
Some used electric models have lost value quickly as new models and prices changed. Check current valuations for the model you are considering.
How can I reduce depreciation?
Buying nearly new rather than new, keeping mileage down, a full service history and a popular colour and model all help.
Is depreciation a real cost if I keep the car?
Yes. It is money you get back less of when you sell or part-exchange, and it is part of what the car costs you each year.