Car Depreciation Calculator — Formule
## Car Depreciation Curve
Cars depreciate fastest in the first few years, then the rate of loss slows. A declining balance model captures this pattern.
### Formula
**Current Value = Purchase Price x (1 - Depreciation Rate)^Years**
The average car loses 20% in the first year, then about 15% per year after that. After 5 years, a typical car retains about 37% of its original value.
Cars depreciate fastest in the first few years, then the rate of loss slows. A declining balance model captures this pattern.
### Formula
**Current Value = Purchase Price x (1 - Depreciation Rate)^Years**
The average car loses 20% in the first year, then about 15% per year after that. After 5 years, a typical car retains about 37% of its original value.
Exemple Résolu
A $35,000 car owned for 5 years at 15% annual depreciation.
- Current value = $35,000 x (0.85)^5 = $35,000 x 0.4437 = $15,530
- Total depreciation = $35,000 - $15,530 = $19,470
- Value retained = 44.4%