Car Depreciation Calculator — Know How Much Your Car is Worth
Calculate how fast your car loses value year by year. Estimate current resale value and see total depreciation cost for any car brand and model in 2026.
A new car loses 20-25% of its value the moment you drive it off the lot and approximately 60% within the first five years. Depreciation is the single largest cost of car ownership even more than fuel or insurance yet most buyers never consider it. A Rs 10 lakh car that depreciates to Rs 4 lakh in 5 years has cost you Rs 6 lakh in depreciation alone or Rs 10000 per month in invisible value loss. Understanding depreciation helps you make smarter buying decisions and know when to sell.
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Key Information
| Parameter | Details |
|---|---|
| Year 1 Depreciation | 20% - 25% |
| Year 3 Depreciation | 35% - 45% cumulative |
| Year 5 Depreciation | 50% - 60% cumulative |
| Lowest Depreciation Brands | Toyota Maruti Honda |
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Use Calculator NowFrequently Asked Questions
Which cars depreciate the least in India?
Toyota and Maruti Suzuki vehicles typically hold their value best in India due to high demand for used units strong after-sales network and reputation for reliability. The Maruti Swift Dzire and Innova Crysta retain 50-55% of value after 5 years. Diesel variants have been depreciating faster since 2020 due to uncertainty around diesel vehicle bans in major cities. Premium luxury cars depreciate fastest losing 60-70% in 5 years.
Is buying a 2-3 year old car better than new?
Financially yes. A 2-3 year old car has already absorbed the steepest depreciation losing about 35-40% of its original value. You can buy a car that originally cost Rs 12 lakh for Rs 7-8 lakh and it will still have most of its useful life remaining. Many certified pre-owned programs offer warranty and quality assurance. The main trade-off is missing out on the latest features and the new car experience.
How to calculate my car current value?
The most common method is the declining balance formula where you apply the annual depreciation percentage to the previous year value. A rough estimate is 15-20% off the remaining value each year after the initial 20-25% first year drop. For accurate market value check platforms like CarDekho OLX Autos or Cars24 where actual selling prices give real market benchmarks for your specific make model year and mileage.
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Last updated: 24 March 2026