Car depreciation calculator: value after every year
This car depreciation calculator shows how much a car loses each year and what it is worth after any number of years. Pick a method — typical market rates, a fixed percentage, straight line, the Indian insurance IDV schedule or the income-tax written-down-value method — and you get the value at the end, the total and average loss, a bar chart and a year-by-year table you can copy.
Use it to estimate resale value before you buy, plan when to sell, budget the true cost of ownership, or work out depreciation on a car for income tax in India. Every rate is editable, so you can match your own model and market. It works in rupees, dollars, pounds, euros and more, entirely in your browser.
How to use the car depreciation calculator
- Choose the currency and enter the purchase price.
- Set Years to show (1–20).
- Choose a Method, or tap a preset: Typical market, Income tax 15%, Taxi / hire 30% or Insurance IDV.
- Adjust the rates that appear for that method — for income tax, tick the box if the car was used for less than 180 days in the first year.
- Read the value at the end, the chart and the table, and copy the schedule if you need it.
Car Depreciation Calculator features
Five methods
Market estimate, declining balance, straight line, India insurance IDV and income-tax WDV, switchable in one click.
Editable presets
Every rate is a field, so the calculator works for any brand, country or accounting policy.
Half-rate rule
The income-tax mode halves the first-year rate for a car used for less than 180 days in the year of purchase.
Chart and table
Opening value, rate, depreciation, closing value and the share lost so far for every year.
Any currency
Rupees with lakh grouping, plus dollars, pounds, euros, Australian and Canadian dollars.
How car depreciation is calculated
Most cars lose value fastest at the start. Kelley Blue Book (July 2025) says many new cars lose about 20% or more in the first year, about 30% over two years and 8–12% a year after that, so that roughly half or more of the price has gone within five years. The Typical market preset uses 20% in year 1 and 12% of the remaining value each later year: a ₹10,00,000 car is worth about ₹8,00,000 after one year, ₹7,04,000 after two and ₹4,79,756 after five (52% lost).
That is an average, not a valuation of your model. For a car depreciation calculator by model, change the two rates: popular models with strong resale demand may lose less, luxury cars and models being replaced often lose more, and high mileage or damage cuts the price further.
| Method | Value at the end of each year |
|---|---|
| Declining balance (WDV) | Opening value × (1 − rate) |
| Straight line | Opening value − (price − salvage) ÷ life, never below the salvage value |
| India insurance IDV | Price × (1 − 15%, 20%, 30%, 40%, 50%) at 1–5 years |
| India income tax | WDV at 15% (cars) or 30% (vehicles used in a hire business); half the rate in a first year of under 180 days |
Car depreciation for income tax in India
Businesses and professionals who own a car for work claim depreciation on the written-down value. Appendix I of the Income-tax Rules sets 15% for motor cars and 30% for motor buses, lorries and taxis used in the business of running them on hire, and only half the rate is allowed when the car is put to use for less than 180 days in the year it is bought. The Income-tax Act, 2025 took over from 1 April 2026; published commentary says these rates carry over, but confirm the current notified table before filing.
Example: a ₹10,00,000 car bought in November is used for under 180 days, so year 1 depreciation is 7.5% (₹75,000) and the written-down value is ₹9,25,000; from year 2 the full 15% applies to the opening value. In a real return the rate applies to the whole block of assets, including additions and sales, so treat this as a single-car illustration.
Insurance IDV is not resale value
The IDV schedule decides what an Indian motor insurer pays after a theft or total loss; it falls to 50% of the current ex-showroom price at 5 years and is then agreed with the insurer. Market resale prices can be higher or lower. For the insured value itself, including accessories and a CNG kit, use the IDV calculator; to add depreciation to fuel, insurance and servicing, use the cost per km calculator.
Car Depreciation Calculator FAQ
How much does a car depreciate per year?
A typical new car loses about 20% in the first year and 8–12% of its value each year after that, according to Kelley Blue Book. The car depreciation calculator lets you change both rates.
What is the depreciation rate on a car as per income tax in India?
Motor cars are depreciated at 15% a year on the written-down value, and vehicles used in a hire business at 30%. Only half the rate is allowed in a year when the car is used for less than 180 days.
How do I calculate car depreciation in India?
Choose a method: the market estimate for resale value, the IDV schedule for insurance, or the 15% WDV method for income tax. Enter the price and years, and the table shows each year’s value.
Can this calculator value my car by model?
Not automatically — it has no price database. Enter rates that match your model, or compare the result with used-car listings for the same model, year and mileage.
What is the difference between WDV and straight-line depreciation?
WDV takes a fixed percentage of the remaining value each year, so the amount shrinks over time. Straight line takes the same amount every year until the salvage value is reached.
Is the result a valuation or tax advice?
No. It is an estimate based on formulas and published average rates. Ask a dealer or valuer for a price, and a tax adviser for your return.