How the car depreciation calculator works
Last updated 10 November 2026
Depreciation is the biggest cost of owning a new car and it is invisible, because no money leaves your account. Estimating it helps you see the real cost.
How it works
- Each year the value falls by the percentage you enter: value × (1 − percentage).
- Value lost = starting value minus the value at the end.
Worked example
With the starting figures:
- After the period, the car is worth about R 168 608.
- The loss in value is R 211 392.
The cost you do not see
Depreciation is the biggest cost of owning many cars, and it is invisible because no money leaves your account. The value of the car simply falls. You only see it when you sell or trade in. Estimating it in advance shows the real cost of owning a car for a few years.
How the estimate works
Enter the price you pay, the number of years you will keep the car and a yearly percentage the value falls. Each year, the value is multiplied by one minus that percentage. The table shows the value at the end of every year, and the result shows the total value lost over the period.
Why the loss shrinks each year
A fixed percentage applies to a smaller number every year, so the rand amount lost falls over time. A new car loses the most in rand terms in its first year or two. Real cars follow a similar shape, usually with a steeper fall at the start.
What affects the real figure
- Make, model and how popular the car is when you sell
- Mileage and service history
- Condition, accident history and paint
- The market for used cars at the time, which moves with prices and interest rates
- Optional extras, which rarely add back what they cost
An estimate, not a valuation
No calculator knows what a particular car will sell for. Treat the answer as a way to compare scenarios, such as keeping a car for three or for seven years. For a real value ask a dealer or use a valuation guide. See the car ownership cost calculator to put depreciation next to fuel, insurance and service costs.
Things to watch
- Real depreciation is faster in the first years and depends on condition and mileage.
- It is an estimate, not a valuation. Ask a dealer for a real one.
Add it to the other costs in the car ownership cost calculator. Read the full disclaimer.