A straight-line estimate of a vehicle’s book value over time — independent of any tax depreciation rules, useful for budgeting or comparing against a trade-in offer.
How it works
The difference between purchase price and estimated salvage value, divided by useful life in years, gives annual depreciation. Multiplying that by years elapsed and subtracting from the purchase price (never going below salvage value) gives the estimated current value.
What this does not include
Real vehicle depreciation isn’t linear — it’s typically steepest in the first year or two and slows afterward; straight-line depreciation is a simplified estimate, not a market-accurate valuation model.
How to use this calculator
- Enter purchase price, estimated salvage value, useful life, and years elapsed.
Frequently asked questions
Is this the same as tax depreciation for a business vehicle?
No — this site’s separate bonus-depreciation and section 179 deduction calculators cover tax depreciation rules; this calculator estimates actual resale/book value instead.
Why isn’t real depreciation linear?
New vehicles typically lose value fastest in the first one to two years due to the “new car” premium disappearing, then depreciate more slowly — straight-line depreciation smooths that curve into an average annual rate.
What’s a reasonable salvage value to use?
Often estimated as the vehicle’s expected value at the end of its useful life or when it would typically be scrapped or sold for parts — a rough estimate is generally sufficient for budgeting purposes.
