Car Depreciation Calculator
From the initial value and age, estimate the current resale value, total depreciation and the cumulative depreciation percentage.
Input Data
Results
Car Value Depreciation Curve
At a glance:Car depreciation estimates value lost over time. Using a declining-balance model (fixed % of remaining value each year, e.g. 15%): current value = initial x (1 - rate)^age; total depreciation = initial - current; depreciation % = total / initial x 100%. Example: HK$300,000 car at 15%/yr, 5y → value ≈ 300k x 0.85^5 ≈ HK$133,004, depreciation ≈ HK$166,996 (≈ 55.7%). In Hong Kong, first registration tax is paid on top and generally not recovered on resale, so the real loss is larger; EVs may hold value differently under the EV concession. WARNING: Estimate only; real resale depends on brand, mileage, condition, accident history, demand. Education, not advice.
Formula
Current value = initial value × residual percentage(age), from a depreciation curve (linearly interpolated).
Total depreciation = initial value - current value.
Depreciation % = total depreciation ÷ initial value × 100%.
$$$V = P_0\\times ResidualPct(age)$ ()$$$$$Dep = P_0 - V$$$$$$\\dfrac{Dep}{P_0}\\times100\\%$$$How to Use
- Enter the initial car value (purchase price).
- Enter the car's age in years.
- View the estimated current value, total depreciation and percentage.
FAQ
Why does value drop fastest early?
Because the model takes a fixed percentage of the remaining value each year (declining balance). A new car loses a big chunk the moment it is titled and driven off, then the annual dollar loss shrinks as the base falls. So year one is the steepest; later years lose less in absolute terms even at the same rate.
Does the first registration tax come back on resale?
Generally no. In Hong Kong, first registration tax is paid on top of the car price at purchase and is not recovered when you sell. So the buyer's total outlay (car + tax + licence + insurance) is much higher than the resale value, and the true economic loss is the depreciation plus the non-recoverable tax. Factor this into total cost of ownership.
How accurate is the estimate?
It is a rough benchmark. Actual resale depends on brand and model popularity, mileage, maintenance and condition, accident history, colour/options, and market supply/demand. Use it for planning and a sanity check, then confirm with used-car listings or a professional appraisal before a real deal.
Do electric vehicles depreciate differently?
They can. EV resale is influenced by battery health, range, charging access and the prevailing first registration tax concession (which changes over time). Some EVs hold value well, others depreciate fast as tech improves. Treat the rate as a starting point and adjust for the specific model and policy.
How do I use this for total cost of ownership?
Combine depreciation with finance interest, first registration tax, licence, insurance, fuel/electricity and parking to get the true annual cost of owning the car. A cheap purchase price can still be expensive if depreciation and tax are high. Pair with the car affordability and car loan calculators.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.