How vehicle depreciation is calculated
The calculator applies the selected percentage to the remaining vehicle value each year. This declining-balance estimate reflects compounding value loss instead of subtracting the same dollar amount every year.
Value after N years = price × (1 − rate / 100)ᴺ
Depreciation per mile = total value loss ÷ miles driven
Car depreciation example
A $30,000 vehicle depreciating 15% per year has an estimated value of about $13,311 after five years. The $16,689 loss equals about $0.28 per mile when driven 12,000 miles per year.
What depreciation per mile includes
This figure includes value loss only. Fuel, maintenance, repairs, tires, insurance, registration, financing and parking are separate ownership costs.
Market-value estimate, not tax depreciation
Actual resale value depends on make, model, mileage, condition, accidents and the used-car market. This tool does not calculate IRS MACRS deductions or model-specific trade-in value.