Car Depreciation Calculator

Cars lose value quickly, especially in the first few years, which matters for planning a resale, understanding your loan's negative-equity risk, or estimating your car insurance's Insured Declared Value (IDV) — Indian motor insurers actually use an IRDA-notified fixed depreciation schedule (5% in year one rising to 50% by year five) specifically for IDV calculations, which differs from a general market-value estimate like this one.

Enter your car's current price and an assumed annual depreciation rate. The calculator applies declining-balance depreciation — value = price × (1 − rate) raised to the power of years — so the rupee amount lost each year shrinks over time even though the percentage rate stays the same, which matches how cars actually lose more value early in their life than later.

Value after n years = price × (1 − rate)^n