Resale Value Depreciation
Depreciation eats what is left, so 25% a year for three years leaves 0.75 cubed — 42% of the original, not 25%. Electronics and cars follow this curve.
Your numbers
Value now
506,250
Drop
57.8%
Difference
693,750
Formula
Value now = Purchase price × (1 − Yearly depreciation ÷ 100) ^ Years
Real second-hand prices step down when a new model lands. This smooth average misses those cliffs just before and after a launch.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| Purchase priceWhat you actually paid, fees included, or the profit maths breaks. | 1,200,000 | 0 and up |
| Yearly depreciation (%)How much value falls each year, applied to what is left. | 25 | 0 ~ 100 |
| Years (yr)How many years the money stays put; compounding bites harder as this grows. | 3 | 0 ~ 30 |
Step by step
Quick reference table
Results when only Purchase price changes and everything else stays put.
| Purchase price | Value now | Drop (%) | Difference |
|---|---|---|---|
| 600,000 | 253,125 | 57.8 | 346,875 |
| 900,000 | 379,688 | 57.8 | 520,313 |
| 1,200,000 | 506,250 | 57.8 | 693,750 |
| 1,800,000 | 759,375 | 57.8 | 1,040,625 |
| 2,400,000 | 1,012,500 | 57.8 | 1,387,500 |
What each result means
| Result | At default values |
|---|---|
| Value nowWhat it is worth today, after depreciation. | 506,250 |
| Drop (%)How far it dropped from the high point, as a percentage. | 57.8 |
| DifferenceThe gap between two values — a quantity, not a rate. | 693,750 |
Common mistakes
Real second-hand prices step down when a new model lands. This smooth average misses those cliffs just before and after a launch.
Glossary
- Purchase price
- What you actually paid, fees included, or the profit maths breaks.
- Yearly depreciation
- How much value falls each year, applied to what is left.
- Years
- How many years the money stays put; compounding bites harder as this grows.
- Value now
- What it is worth today, after depreciation.
- Drop
- How far it dropped from the high point, as a percentage.
- Difference
- The gap between two values — a quantity, not a rate.
Frequently asked questions
Q. How is Resale Value Depreciation calculated?
Value now = Purchase price × (1 − Yearly depreciation ÷ 100) ^ Years — Depreciation eats what is left, so 25% a year for three years leaves 0.75 cubed — 42% of the original, not 25%. Electronics and cars follow this curve.
Q. Can you walk through an example?
With Purchase price 1,200,000, Yearly depreciation 25%, Years 3yr, the answer is Value now 506,250.
Q. What do I need to enter?
Enter Purchase price, Yearly depreciation, Years. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only Purchase price moves the answer to Purchase price 600,000 → Value now 253,125 and Purchase price 2,400,000 → Value now 1,012,500. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
Real second-hand prices step down when a new model lands. This smooth average misses those cliffs just before and after a launch.
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