Question 1

How much does an electric car depreciate?

Accepted Answer

Like most cars, an EV loses the largest share of its value in the first year — often around 15–25% — then a steadier percentage each year after. Over five years many vehicles retain roughly 40–55% of their original price, though this varies widely by model, mileage, condition, and demand. This calculator lets you set your own first-year and annual drop rates so you can model an optimistic or conservative scenario.

Question 2

Why is depreciation considered the biggest cost of ownership?

Accepted Answer

Depreciation is the gap between what you paid and what you can sell the car for. For most owners that loss is larger than fuel, charging, insurance, or maintenance combined over the same period — you just don't see it as a monthly bill. Factoring it in gives you the true cost of owning the vehicle, not just the cost of running it.

Question 3

Do EVs depreciate faster than gas cars?

Accepted Answer

It depends on the model and the market. Battery health, charging-network maturity, incentive changes, and rapid improvements in newer models can all push used-EV values around. Some EVs hold value as well as comparable gas cars; others drop faster. Because it's so model-specific, this tool uses editable rates rather than baking in a single figure that would quickly go stale.

Question 4

Is this an exact resale prediction?

Accepted Answer

No. It's a planning estimate based on the rates you enter. Actual resale value depends on the specific model, trim, mileage, condition, location, and demand at the time you sell. Use it to compare scenarios and understand the shape of depreciation — not as a guaranteed sale price.

EV Depreciation Calculator

Frequently asked questions

Related guides

Related calculators

EV Loan & Payment Calculator

EV vs Gas Cost of Ownership Calculator

EV Tax Credit Calculator

EV Lease Payment Calculator