Car Depreciation per Mile Calculator
Hidden driving cost.
Calculate car depreciation per mile to understand true driving cost. Enter purchase price, resale value, and miles driven to see the per-mile loss.
What this tool does
Cars lose value across their useful life, and dividing that loss by total miles driven gives a per-mile depreciation rate. This calculator takes your purchase price, expected resale value, and projected lifetime miles to estimate the depreciation cost embedded in each mile of driving. The result shows how much of your initial investment is consumed per mile—a figure that tends to be influenced most heavily by the gap between purchase and resale values, since larger value losses spread across the same mileage increase the per-mile cost. For example, a vehicle purchased at a high price but expected to retain significant value will show lower per-mile depreciation than one losing value quickly. Note that this calculation covers depreciation only and does not account for fuel, maintenance, insurance, or other operating costs. The output is for illustration and reflects the inputs you provide.
Quick answer: with the default values, the result is $0.15 (Depreciation per Mile). Adjust the values below for your own figures.
Enter Values
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Formula Used
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Car depreciation per mile calculator measures hidden cost of driving. 30,000 car, 8,000 resale value after 150,000 lifetime miles = 22,000 total depreciation = 0.147/mile. Combined with fuel and maintenance, true cost-per-mile is 0.40-0.60 (typical). Most drivers underestimate by 70%.
Example: 30,000 new car. Sell at 8,000 after 10 years (150,000 miles). Total depreciation 22,000. Per-mile depreciation 0.147. Plus fuel 0.13/mile, maintenance 0.10/mile, insurance 0.05/mile, tax/MOT 0.02/mile. True total cost: 0.45/mile. Same trip: 50 miles costs 22.50 actual vs 6.50 perceived (fuel only).
Depreciation curves: New cars lose 15-25% in year 1, 50% by year 3, 70% by year 5, 85% by year 10. 30k new = 4,500 lost driving off forecourt. Used cars (3+ years old) depreciate slower (10-15%/year). Best value: 2-3 year old cars - newest year of biggest depreciation done. Lifetime miles: economy cars 150-200k, mid-range 200-250k, luxury/EV 200-300k. Track depreciation per mile to evaluate true driving cost vs alternatives.
Quick example
With purchase price of 30,000 and expected resale value of 8,000 (plus expected lifetime miles of 150,000), the result is 0.15.
Which inputs matter most
You enter Purchase Price, Expected Resale Value, and Expected Lifetime Miles.
What's happening under the hood
Depreciation per mile = (purchase price - resale value) / lifetime miles.
Why see the number at all
Small recurring spending is invisible by design — every individual transaction is forgettable. Compounded over years, the total often surprises. Seeing the figure doesn't mean you typically need to cut the spending; it just makes the trade-off conscious.
(£30,000 - £8,000) / 150,000 miles = $0.15.
Inputs
| Total Depreciation | $22,000.00 |
|---|---|
| Monthly Depreciation (10y) | $183.33 |
| Lifetime Miles | 150,000 mi |
| Depreciation % | 73.33% |
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
This calculator computes the depreciation cost per mile driven by dividing the total depreciation amount by the expected lifetime miles. The total depreciation is calculated as the difference between the purchase price and the expected resale value. The result represents the average depreciation cost attributable to each mile of driving over the vehicle's lifetime. The calculation assumes constant depreciation across all miles driven—that is, each mile contributes equally to the overall loss in value. It does not account for other ownership costs such as fuel, maintenance, insurance, or repairs. The model also assumes the resale value estimate is accurate and does not fluctuate due to market conditions, vehicle condition variations, or timing of sale. The result is an average figure and does not reflect how depreciation may vary in practice, particularly the typically steeper value loss in early ownership periods.
References
Frequently Asked Questions
Why does depreciation matter?
Best value cars for depreciation?
New vs used depreciation?
Lifetime miles realistic?
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