Car Depreciation Calculator — United Kingdom
Estimate how much a car loses in value: total depreciation, per year, per month and per mile or km driven. For United Kingdom drivers this uses real local figures where we have them — a MOT costs about £54.85 per test and annual vehicle excise duty (VED) is around £190 per year. Prices default to GBP and UK miles per gallon.
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Why cost of ownership matters
The purchase price is only the beginning. Fuel or electricity, insurance, vehicle excise duty (VED), the MOT, servicing, tyres, repairs and depreciation together usually cost more than the car itself over a few years. Use this tool to see the full picture before you buy.
How to use this calculator
Enter realistic figures for your situation — what you actually pay for insurance, what you expect to drive in a year — and the tool breaks the total down into monthly, weekly, yearly and per-distance costs. Adjust any figure and the results update instantly.
Frequently asked questions
How is car depreciation calculated?
Enter the purchase price, the age and the expected resale value, and the tool shows the total loss plus the loss per year, per month and per mile or kilometre driven, in GBP.
Why is depreciation the biggest cost of owning a car?
Because a new car loses a large share of its value in the first years, before fuel, insurance, vehicle excise duty (VED) and the MOT are counted. Over five years it usually outweighs every other line.
Which cars hold their value best?
Resale data varies by model, year and the UK. Enter the real trade-in or asking price for the car you are considering instead of using a rule of thumb.
Should I include depreciation in a cost comparison?
Yes — leaving it out flatters new cars and makes cheap used cars look worse than they are. The Car Cost Calculator includes it alongside vehicle excise duty (VED) and the MOT.
Estimate only: results depend entirely on the inputs. Prices and rates change; check current official sources before committing.