How is this calculated?
Straight-line annual depreciation = (purchase price - salvage value) / useful life Declining balance value = purchase price * (1 - rate)^years Default market curve = year 1 loss of 25%, years 2-5 loss of 15% per year
Example: a $35,000 car with a 25% first-year loss is worth $26,250 after one year. If it then loses 15% in year two, the value becomes $22,312.50.
How do I use this calculator?
- Choose the unit or currency setting that matches your vehicle data.
- Enter the required vehicle, route, fuel, weight or loan values in the calculator form.
- Review inline warnings and correct any missing or negative inputs.
- Read the live result card for the primary answer and supporting totals.
- Use the worked example if you want to check the formula with sample values.
- Copy, share or print the results for comparison or record keeping.
What do the terms mean?
- Salvage value
- Estimated value at the end of useful life.
- Straight-line
- A method that subtracts equal depreciation each year.
- Declining balance
- A method that applies a fixed percentage loss to the remaining value.
- Market curve
- A simplified vehicle resale pattern using heavier early depreciation.
- Percent lost
- Total depreciation divided by original purchase price.
What are real-world examples?
| Scenario | Inputs | Result | Notes |
|---|---|---|---|
| New sedan | $32,000 at 3 years | $19,508 | Default curve |
| Luxury SUV | $72,000 at 5 years | $31,932 | Higher early loss common |
| Work van | $48,000 at 4 years | $29,479 | Fleet condition matters |
| Straight-line asset | $50,000, $8,000 salvage | $29,000 at year 3 | 7-year useful life |
What tips improve accuracy?
- Condition, accident history and mileage can move real resale value sharply.
- Use actual comparable listings for final buy/sell decisions.
- Luxury vehicles often depreciate faster in dollars even when percentages look similar.
- Popular trucks and hybrids can retain value better in tight markets.
- For taxes or accounting, follow your local rules rather than a consumer estimate.
- Keep service records to defend resale value.
Did you know? EPA estimates commonly use 8.89 kg CO2 per gallon of gasoline and 10.18 kg CO2 per gallon of diesel for tailpipe carbon dioxide calculations.
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Frequently asked questions
Is this calculator free to use?
Yes. The calculator runs in your browser, does not require an account and can be printed or copied for your records.
Can I use this for official tax, loan or compliance filing?
Use it as an estimate. For official filing, financing or enforcement decisions, verify the final numbers with your lender, tax authority, manufacturer rating label or compliance professional.
Why are my real-world results different?
Real vehicles vary with load, speed, terrain, temperature, tire condition, maintenance, driver behavior and measurement quality.
Does the calculator save my units?
Yes. Unit and currency selections that are marked as preferences are stored in localStorage on your device so the next visit starts with your preferred setting.
Can I share the result?
Yes. Use the Share button if your browser supports native sharing, or copy the permalink and result summary.
Does it work on mobile?
Yes. The layout stacks on small screens, keeps labels visible and recalculates as you type.
How accurate are the formulas?
The formulas are standard industry math for estimates. Accuracy depends on the input values and whether the assumptions match your vehicle and jurisdiction.
When was this page updated?
This page was last updated on 2026-05-01 for 2026 planning assumptions and source links.