RealCost Tool
Car Depreciation Calculator UK
Estimate how much value a car may lose while you own it.
Enter the purchase price, resale value, ownership period and yearly mileage to see depreciation per year, per month, per mile and as a percentage of the purchase price.
Total value lost
See the difference between what the car cost and what it may be worth later.
Monthly depreciation
Turn hidden value loss into a monthly ownership cost you can compare.
Cost per mile
Estimate how much depreciation each mile adds to the real cost of driving.
Calculate car depreciation
Enter the purchase price, expected resale value, ownership period and yearly mileage. The calculator will estimate total depreciation, monthly depreciation and depreciation cost per mile.
This calculator estimates depreciation only. It does not include fuel, insurance, road tax, servicing, MOT, tyres, repairs, finance interest or other running costs.
Depreciation is the hidden cost many buyers miss
Fuel and insurance feel obvious because you pay them regularly. Depreciation is quieter. It usually appears later when you sell, part-exchange or realise the car is worth far less than you paid.
RealCost insight: A car can look affordable because the monthly payments are manageable, but if it loses thousands in value, the true monthly cost can be much higher than it first appears. For the full picture, compare this result with the Car Cost Calculator UK.
What the calculator includes
The calculator uses four simple inputs to turn value loss into practical ownership figures.
Purchase price
The price you paid for the car, or the price you expect to pay.
Current or resale value
What the car is worth now, or what you expect it to be worth when you sell it.
Ownership period
How many years you have owned the car or plan to keep it.
Miles driven per year
Used to estimate total miles driven and depreciation cost per mile.
What the results tell you
Use the monthly and per-mile figures to judge whether the car still makes sense after value loss is included.
Total depreciation
The total value lost while you own the car.
Depreciation per year
Average value lost each year.
Depreciation per month
Hidden monthly ownership cost.
Depreciation percentage
The share of the purchase price lost through depreciation.
Depreciation cost per mile
The estimated value loss for each mile driven.
Value lost per £1,000 spent
How much value is lost for each £1,000 paid.
Example depreciation result
This example uses a £10,000 purchase price, £6,000 resale value, 3 years of ownership and 10,000 miles per year.
Purchase price
£10,000
Resale value
£6,000
Ownership period
3 years
Total miles
30,000
Total depreciation
£4,000
Per year
£1,333.33
Per month
£111.11
Per mile
£0.13
What this means: In this example, the car loses £111.11 per month before fuel, insurance, tax, servicing or repairs are included. That depreciation is part of the real monthly cost of ownership, even though it does not leave your bank account every month.
What to do with your result
The result becomes more useful when you test other cars, ownership lengths and resale values.
Run another car
Compare a cheaper used car, a newer car and the car you actually want.
Change ownership length
Keeping a car longer can spread depreciation across more months.
Add all ownership costs
Depreciation is only one part of the total cost of owning a car.
When depreciation is sensible and when to be cautious
A depreciation result is not automatically good or bad. It depends on mileage, ownership length and the rest of the car’s running costs.
The result looks sensible if
- Monthly depreciation feels manageable
- Cost per mile is not excessive
- The resale value estimate is realistic
- The car still works after adding other running costs
Be cautious if
- Depreciation is higher than fuel and insurance combined
- Low mileage makes the cost per mile look painful
- The result depends on an optimistic resale value
- You are buying newer than your budget really supports
What affects depreciation?
These are the main reasons the real resale value may be higher or lower than expected.
Higher mileage can reduce resale value and increase depreciation per year.
Damage, poor maintenance history or missing records can lower value.
Some cars hold value better because demand stays stronger.
Petrol, diesel, hybrid and electric cars can depreciate differently depending on demand.
Newer cars often lose value faster early on, while older cars may lose value more slowly.
Used-car prices can move with demand, supply, fuel prices and buyer preferences.
Depreciation is not the full cost
Use these calculators next to build a fuller ownership picture.
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What to calculate next
Use these tools to connect depreciation to the wider buying or ownership decision.
Car Cost Calculator UK
Estimate the full cost of owning a car, including depreciation and running costs.
Car Rent vs Buy Calculator UK
Compare renting, subscribing or hiring a car against buying and selling later.
Car Insurance Cost Calculator UK
Check how insurance affects the true monthly cost of a car.
Car Maintenance Cost Calculator UK
Add servicing, MOT, tyres and repair allowance to the ownership picture.
Fuel Cost Per Mile Calculator UK
Compare depreciation per mile with fuel cost per mile.
Related buying and ownership guides
Continue comparing the costs and risks that affect whether a car is worth buying or keeping.
Cheapest Used Cars to Run UK
Compare practical used-car choices where ownership costs matter.
Most Reliable Used Cars UK
Compare reliability before depreciation savings are wiped out by repairs.
How Much Should I Spend on a Car UK?
Think through your car budget before value loss and running costs catch you out.