How this calculation works
Apply the entered annual percentage to the reducing value: future value = current value × (1 − depreciation rate)^years. Show cumulative value lost and average monthly loss over the chosen period.
A worked example
A R200 000 car losing 10% of its remaining value annually is worth R162 000 after two years.
Assumptions & limitations
- The rate is your scenario, not a vehicle valuation. Make, mileage, condition, accidents, market demand and inflation affect resale prices. Running costs and finance interest are excluded.
