Auto Pricing Calculator
Auto pricing calculator works out Value at the end and Total value lost from Purchase price, Years of ownership and First-year depreciation. The default figures on this page give estimated value now of 14,616.18; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
5 steps
- Year 1: 35000 loses 20% to 28000.
- Each later year loses 15% of the remaining value.
- After 5 years the value is 14616.18, a loss of 20383.83 (58.2%).
- Over 60000 miles that is 0.34 of depreciation per mile.
- Baseline after 5 years of the entered retention rates: 14616.18.
Value year by yeartable
| year | startValue | depreciation | endValue | cumulativeLoss |
|---|---|---|---|---|
| 1 | 35,000 | 7,000 | 28,000 | 7,000 |
| 2 | 28,000 | 4,200 | 23,800 | 11,200 |
| 3 | 23,800 | 3,570 | 20,230 | 14,770 |
| 4 | 20,230 | 3,034.5 | 17,195.5 | 17,804.5 |
| 5 | 17,195.5 | 2,579.33 | 14,616.18 | 20,383.83 |
Its 7 worked examples are re-run on every release, last on 15 September 2026. What changed
Sources and references
3 sources
Keep this result
Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the auto pricing calculator calculates
Projects a vehicle's value over time using a declining-balance depreciation model, showing the loss in each year, and estimates what a vehicle of a given age is worth today - as a private-party value, a range, or a trade-in figure - from the retention rates and adjustments you supply.
How to use this auto pricing calculator
Enter Purchase price, Years of ownership, First-year depreciation and Depreciation each later year. Value at the end updates as you type. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Value at the end, Total value lost and Percentage of value lost.
The method follows Declining-balance depreciation: value(t) = cost x (1 - rate)^t, US Bureau of Labor Statistics and industry studies place new-vehicle first-year depreciation around 20% and subsequent years near 15% and No make-, model- or guide-specific retention curve is embedded.
What you can compare
Change one input at a time to see how it affects Value at the end, Total value lost and Percentage of value lost. The inputs you can vary are Purchase price, Years of ownership, First-year depreciation, Depreciation each later year, Miles driven a year and Minimum residual value.
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
See something wrong? Report a problem with this calculator
Frequently asked questions
What is the 20% rule when buying a car?
On the figures this page opens with — purchase price 35,000, years of ownership 5, first-year depreciation 20% and depreciation each later year 15% — the estimated value now is 14,616.18. No single number fits everyone: change any figure above and the answer updates as you type, with each step of the arithmetic beside it.
How do I calculate the out-the-door price of a car?
Projects a vehicle's value over time using a declining-balance depreciation model, showing the loss in each year, and estimates what a vehicle of a given age is worth today - as a private-party value, a range. Open “How this is worked out” beside the result to see each step for your own figures.
What is the most accurate car valuation tool?
The auto pricing calculator follows the stated method, but the result is only as reliable as Purchase price, Years of ownership, First-year depreciation, Depreciation each later year and Miles driven a year and the assumptions shown. Check the working and sources before relying on it for an important decision.
What information do I need for the auto pricing calculator?
You need Purchase price, Years of ownership, First-year depreciation, Depreciation each later year, Miles driven a year, Minimum residual value, Mileage adjustment and Condition and history adjustment. The page opens with default figures that give estimated value now of 14,616.18, so you can see the scale before entering your own.
What does this auto pricing calculator show?
It shows Value at the end, Total value lost, Percentage of value lost, Average loss per year, Depreciation per mile, Loss in the first year, Value year by year and Year the value halves, with the working and any warnings for your entries.
Can I check how the auto pricing calculator result was calculated?
Yes. The “How this is worked out” section shows the calculation steps, and the sources section identifies the references used for the method.