Car Depreciation Calculator
Last updated: 2026-06-25
Car depreciation is estimated by multiplying the new car price by a year-by-year residual value rate. Typically a car drops about 20–30% in year one, then declines at a tapering rate each year.
Residual value = new price × residual rate; cumulative depreciation = new price − residual value. The real market price is an estimate that varies by model and history.
Enter Vehicle Details
Estimated residual value
0 won
| Item | Value |
|---|---|
| New car price | |
| Residual value rate | |
| Estimated residual value | |
| Cumulative depreciation |
This is an estimate for reference. The real market price varies widely with mileage, accident history, model popularity, and options, so check used-car prices separately before buying or selling.
How to Use
- Enter the new car price — enter the new car price at purchase, in won.
- Select the vehicle age — enter the number of years elapsed since first registration.
- Check the result — press Calculate to see the estimated residual value and cumulative depreciation using the year-by-year residual value rate.
How Car Depreciation and the Yearly Residual Value Rate Work
Car depreciation is the loss in a vehicle's value over time. This calculator estimates it by multiplying the new car price by an average year-by-year residual value rate. Residual value = new price × residual rate, and cumulative depreciation = new price − residual value. The first-year drop is the largest, after which the rate of decline gradually tapers.
| Vehicle age | Residual value rate | Cumulative depreciation |
|---|---|---|
| 1 year | 75% | 25% |
| 2 years | 65% | 35% |
| 3 years | 57% | 43% |
| 4 years | 50% | 50% |
| 5 years | 44% | 56% |
| 7 years | 33% | 67% |
| 10 years | 20% | 80% |
For example, a 30,000,000 won car after 3 years applies a 57% residual rate for about 17,100,000 won, with cumulative depreciation of about 12,900,000 won. Before buying, check your monthly burden with the auto loan calculator and your initial taxes with the car acquisition tax calculator to gauge your total cost of ownership.
Frequently Asked Questions (FAQ)
How is car depreciation calculated?
Depreciation is estimated by multiplying the new car price by a year-by-year residual value rate. Typically a car drops about 20–30% in year one and then declines at a tapering rate each year. Residual value = new price × residual rate; depreciation = new price − residual value.
Why does a new car drop so much in the first year?
A car becomes 'used' the moment it is registered: the new-car premium disappears and the first year's driving and wear are reflected, so the first-year drop is the largest. That's why many cars fall by about 20–30% in year one.
What affects depreciation?
Mileage, accident/repair history, brand and model popularity, color, options, discontinuation, and market demand all matter. Popular models depreciate slowly, while unpopular or discontinued models depreciate faster.
Is this residual value the same as the real market price?
No. This calculator applies an average year-by-year depreciation rate as an estimate; the real market price varies a lot by model, options, history, and region. Before buying or selling, always compare with a used-car pricing service or actual listings.
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Last updated: 2026-06-25