Vehicle depreciation calculator
Vehicle depreciation calculator
What a vehicle is likely worth after a number of years at a declining balance rate, and what that loss costs annually.
How this is calculated
Value = price x (1 - rate/100)^years — a declining balance, which takes the same share from whatever is left each year rather than from the original price.
- The rate is typed in, not supplied. A vehicle's real curve is steepest in the first two years and flattens after, which a single percentage cannot express.
- Mileage, service history, colour and a local demand shock move the resale price more than the age alone. Treat this as a planning figure rather than a valuation.
What a vehicle is likely to be worth after a number of years at a rate you supply, and what the loss works out to per year of ownership.
Why the rate is yours to enter
A value curve is not one number. The steepest part of a vehicle’s decline is the first registration and the first two years, after which the curve flattens; demand for one model can collapse or spike while the age of every vehicle in it stays the same. Because no single percentage describes that, this page does not publish one — you enter the share of value you expect to lose each year and the arithmetic runs on your assumption.
The method is a declining balance: the same share is taken from whatever is left each year rather than from the original price, which is why the loss is larger in the first year than in the last even though the percentage does not change.
Worked through
A ₹9,40,000 vehicle losing 12 per cent of what remains each year is worth about ₹4,96,068 after five years. The ₹4,43,932 difference is the cost of ownership in that period — roughly ₹88,786 a year, before insurance, fuel or servicing.
Questions readers ask
Is this a valuation?
No, and it should not be used as one. It is a planning figure drawn from a rate you supplied. A resale price is set by what a buyer in your city will pay for your specific car with your specific mileage and service history.
What rate should I enter?
One that describes the vehicle and market you are in. A popular hatchback, a niche import, a diesel and an electric car each follow different curves, and the honest answer is that you are choosing the assumption rather than reading a fact off this page.
Does mileage matter?
It matters as much as age and sometimes more, which is why a single annual percentage is a simplification. Two identical cars of the same year can be far apart in price on the strength of 40,000 km.
Should I add this to the running cost?
For a full picture of what a vehicle costs, yes: the running cost calculator deliberately leaves it out because it answers what keeping the vehicle costs in cash rather than what owning it costs in value.
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