Car depreciation calculator
Your car
A projection from a flat rate, not a valuation. Real curves are steeper early and flatter later, and vary by model: Youi's three-year figures run from about 20% to 55%. The ATO preset is the tax schedule for business use, on a cost capped at the $69,883 car limit for 2026-27.
Value by year
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How the car depreciation calculator works
The calculator applies an optional drive-off loss on delivery and then a flat yearly rate to the remaining value. The market preset uses the 15% a year rule of thumb Youi publishes, with a 10% drive-off loss by default inside the 10 to 15% range Budget Direct and Youi give for new cars. The ATO preset uses the diminishing value rate for a car with an eight-year effective life, 25% a year, which is a tax schedule for business use rather than a forecast; it applies no drive-off loss and, for passenger cars, the cost that can be depreciated is capped at the car limit of $69,883 for 2026-27. The custom option takes any rate, so you can enter a model-specific figure: Youi reports three-year losses of about 20% for a Toyota Prado or HiLux and 55% for a Tesla Model Y Long Range, which are roughly 7% and 23% a year.
Depreciation is the largest single cost of owning most cars. RACQ's 2025 example of a Suzuki Swift Hybrid loses $14,850 of its $28,350 on-road price over five years, inside a total cost of ownership of $10,494 a year; the running costs guide has the figures by segment. The number matters for finance because a balloon has to sit under the car's value at the end of the term, and for business buyers because the ATO's schedule sets the deduction; the business vehicle loans guide covers that side.
Related guides and calculators
Car depreciation calculator FAQs
How do I calculate the depreciation of my car?
Take the purchase price, subtract the drive-off loss if the car is new (Youi and Budget Direct put it at 10 to 15%), then reduce the remaining value by a yearly rate. Youi publishes roughly 15% a year as the market rule of thumb, flattening as the car ages. For a specific model, the best guide is what three-year-old examples sell for today: Youi’s analysis of top sellers found three-year losses from about 20% (Toyota Prado, HiLux) to 55% (Tesla Model Y Long Range).
What is the ATO depreciation rate for vehicles?
For tax, the ATO sets an eight-year effective life for a car, which is a diminishing value rate of 25% a year (200% ÷ 8) on the written-down value, or a prime cost rate of 12.5% (100% ÷ 8) on the original cost, as Budget Direct cites. The cost is capped at the car limit for passenger cars, $69,883 for 2026-27. Select the ATO preset above to see the 25% schedule; it is a tax schedule, not a forecast of resale value.
How much does a car depreciate in the first year?
Typically 20 to 30% of the purchase price for a new car: a drive-off loss of 10 to 15% the day it is delivered (Budget Direct, Youi) plus roughly 15% over the following year. A near-new used car skips the drive-off loss, which is why RACQ and NRMA both point to low-kilometre used cars as the cheaper way to own a recent model.
Which cars depreciate the least in Australia?
Youi’s analysis of top-selling models over the three years to early 2026 found the Toyota LandCruiser Prado VX (19.52% lost), HiLux SR5 Double Cab 4x4 (21.07%) and other LandCruiser variants held value best, with mainstream SUVs and utes generally ahead of large sedans and niche models. The Tesla Model Y Long Range (55.04%) and Performance (48.60%) lost most, after new-EV price cuts flowed into the used market.
How does depreciation affect a car loan balloon?
The balloon should sit below the car’s expected value at the end of the term so a sale or trade-in clears it. At 15% a year a car is worth about 44% of its price after five years, so a 40% balloon on a five-year loan is tight and a 50% balloon is underwater; Pepper Money publishes balloons of 40% on five-year terms and 50% on one-to-three-year terms. Run the same years in the car loan calculator and compare the balloon with the value here.
Does using this calculator affect my credit score?
No. It runs in your browser on the numbers you type and nothing is lodged or checked.