Use DepreciationsCalculator.co.uk to estimate how cars, vans, electric vehicles, business assets, office equipment, machinery and commercial property lose value over time. Start with the quick calculator below, then open a dedicated tool for detailed year-by-year schedules, residual values, HMRC capital allowance planning and practical UK depreciation guidance.
Choose an asset type, enter the purchase price and ownership period, then get an instant reducing-balance depreciation estimate with annual and monthly figures.
This quick tool uses the reducing balance method, which means the depreciation charge is calculated from the asset’s remaining value each year. That makes the first year charge larger and the later years smaller, which is often closer to how vehicles, IT equipment and many business assets actually lose value in the real world.
For a faster estimate, leave the rate field blank and use the built-in planning rate for your selected asset type. For a more accurate result, override the rate using your own information from a dealer valuation, asset register, finance agreement, fleet policy or accountant. The calculator is designed for planning, budgeting and comparison, not for replacing a professional valuation.
| Result | Meaning |
|---|---|
| Year 1 depreciation | The estimated value lost in the first year. This is usually the biggest hit for new cars, EVs, vans and fast-moving technology assets. |
| Total depreciation | The full reduction in value across the selected ownership period. This helps compare buying, leasing, keeping or replacing an asset. |
| Estimated end value | The projected net book value or resale value at the end of the period, after annual depreciation has been applied. |
| Average monthly cost | Total depreciation divided by months owned. This is useful for personal budgets, fleet decisions and finance comparisons. |
These quick facts help users understand the difference between market value loss, accounting depreciation and tax relief.
Depreciation is simple once you separate three ideas: market value, accounting treatment and tax relief.
A car, van, EV, laptop, machine or fixture normally becomes less valuable as it ages. The speed depends on demand, wear, mileage, technology changes, condition and brand strength.
Accounting depreciation spreads the cost of an asset over its useful economic life. Businesses commonly use straight-line depreciation for predictable assets and reducing balance depreciation for vehicles and equipment.
For tax, HMRC capital allowances usually replace accounting depreciation. That is why the number in your accounts and the number in your tax computation can be very different in the same year.
Use these tools for car value loss, EV residual values, mileage impact, finance equity and fleet replacement planning.
Estimate how much a petrol, diesel or hybrid car could lose each year, with an adjustable rate and full ownership schedule.
Open car calculator →Model EV value loss using battery age, used EV demand, technology change, mileage and residual value assumptions.
Open EV calculator →Estimate depreciation for plug-in hybrids and self-charging hybrids, including CO₂-related tax planning notes.
Open hybrid calculator →Focus on the first-year value drop after registration, then see how depreciation usually slows in later years.
New car calculator →Start from the vehicle’s current value and project what it may be worth after another one to ten years.
Used car calculator →Answer the simple question: what could my car be worth in future years based on a chosen depreciation curve?
Value over time tool →Compare low, average and high annual mileage to see how extra usage can reduce resale value.
Mileage calculator →Model premium and performance cars where early depreciation can be much steeper than mainstream models.
Luxury calculator →Compare two vehicles side by side using total depreciation, end value, monthly cost and ownership period.
Compare vehicles →Dedicated calculators for sole traders, limited companies, landlords, fleet managers and asset-heavy businesses.
Estimate value loss for vans, LCVs, pickups and commercial vehicles used by trades, couriers and small businesses.
Van calculator →Plan mixed fleets by combining car, van, EV and mileage assumptions into one replacement-cost view.
Fleet calculator →Calculate straight-line or reducing-balance depreciation for fixtures, tools, equipment and general fixed assets.
Business asset calculator →Estimate depreciation for desks, chairs, phones, printers, laptops and general office fit-out costs.
Office equipment tool →Model depreciation for plant, manufacturing machinery, workshop equipment and production assets.
Machinery calculator →Estimate AIA, writing down allowances, first-year allowances, special rate pool relief and tax timing differences.
HMRC calculator →Plan how qualifying purchases use the AIA limit and when a pool balance may remain after the claim.
AIA calculator →Track main pool and special rate pool balances after allowances have been claimed or where AIA is unavailable.
WDA calculator →Split land, building structure, fixtures and plant to understand property depreciation and SBA treatment.
Property calculator →Typical planning rates for accounting estimates, plus common HMRC capital allowance treatment. Always adjust for your actual policy and asset details.
| Asset type | Typical planning rate | Method | Common UK tax treatment |
|---|---|---|---|
| New petrol or diesel car | 20–30% | Reducing balance | WDA by CO₂ band; cars do not qualify for AIA |
| New zero-emission car | 25–35% | Reducing balance | 100% first-year allowance may apply if new and qualifying |
| Hybrid car | 20–28% | Reducing balance | Main or special rate pool depending on CO₂ emissions |
| Commercial van or LCV | 20–25% | Reducing balance | May qualify for AIA because vans are not treated as cars |
| IT and computer equipment | 25–33% | Straight-line or reducing balance | Often qualifies for AIA or other plant and machinery allowances |
| Machinery and plant | 15–25% | Straight-line or reducing balance | AIA, 40% FYA, full expensing or WDA depending on circumstances |
| Office furniture and fixtures | 10–20% | Straight-line | Usually plant and machinery; check fixtures and integral features |
| Commercial building structure | 2–4% | Straight-line | SBA at 3% for qualifying non-residential construction expenditure |
| Land | Normally not depreciated | Not applicable | No capital allowance on land cost |
Searchers often ask why two similar assets lose value at different speeds. These are the main practical drivers.
Higher mileage normally reduces vehicle value because buyers expect more wear, shorter component life and more maintenance. For business equipment, heavy daily use has a similar effect.
Clean service records, careful ownership, warranty cover and documented repairs can protect residual value. Missing paperwork or poor condition accelerates depreciation.
EV battery range, charging speed, software support, emissions rules and market supply all influence values. Newer technology can make older models look less attractive faster.
Tax rules do not change the market value directly, but they affect the after-tax cost of ownership for businesses comparing cars, vans, machinery and property improvements.
Strong brands, desirable trims, popular colours and high-demand models usually hold value better than unusual specifications or vehicles with weak used demand.
Keeping an asset slightly longer can spread the depreciation cost over more months, but repair costs and downtime can rise. The best decision balances depreciation with reliability.
Depreciation is not only an accounting word. It affects buying decisions, vehicle finance, business tax timing, cash flow and the true cost of ownership.
If you are choosing between a new car and a nearly new car, depreciation may be the largest cost you face. Fuel, insurance and servicing are visible every month, but value loss is often hidden until you sell or part-exchange. A car depreciation calculator helps you compare the true cost of two models that have similar monthly payments but very different future resale values.
Electric vehicle prices can move quickly when battery range, charging speed, grants, manufacturer discounts and used supply change. Use the EV depreciation tool to test a cautious, normal and optimistic residual value before you commit to a PCP, lease or cash purchase. This is especially helpful when deciding whether to buy new, buy used or wait for a newer model.
For a business, depreciation affects accounts while capital allowances affect taxable profit. A van, laptop, machine or company car may look affordable on monthly finance, but the tax relief could arrive at a different speed. Use the business asset and HMRC calculators together to see both the accounting cost and the likely tax timing.
Fleet depreciation can make a small percentage difference worth thousands of pounds. Replacing ten vehicles one year too early may waste value, while keeping them too long can increase downtime and repair risk. A fleet depreciation schedule helps set a practical replacement cycle by comparing annual depreciation, mileage, fuel type and expected disposal value.
Property depreciation is different from vehicle depreciation because land, residential buildings, commercial structures and plant fixtures have separate treatment. Splitting the purchase price correctly can help you understand what may qualify for Structures and Buildings Allowance, what may sit in a plant pool and what may not qualify for allowances at all.
These calculators are useful for quick client conversations, asset register checks and depreciation policy reviews. They can help explain net book value, residual value, writing down allowances and the difference between profit and taxable profit in plain English, before moving the final numbers into accounting software or a tax return.
A few small assumptions can make a depreciation forecast look more accurate than it really is. Check these points before relying on the numbers.
The original price is only the starting point. Delivery fees, options, discounts, VAT treatment, private use and part-exchange allowances can change the real cost basis. For vehicles, the invoice price and on-the-road price may not tell the same story.
A residual value assumption is essential when comparing buying and leasing. Two vehicles can depreciate at the same percentage rate but produce very different cash outcomes if one starts with a higher price and ends with a weaker resale value.
Depreciation in the accounts is not automatically the tax deduction. HMRC capital allowances follow their own rules, pools and timing. Always separate net book value from tax written down value when planning business asset purchases.
Sole traders and partnerships may need to adjust claims where an asset has both business and private use. A car used partly for personal journeys is not treated in the same way as a van or machine used entirely for trade.
EV depreciation varies by range, battery warranty, charging curve, software, brand, new-car discounts and used demand. A premium EV with strong demand can behave differently from a discounted model in an oversupplied segment.
Useful life is not fixed forever. If a business changes how it uses an asset, or if technology becomes obsolete sooner than expected, the depreciation estimate should be reviewed rather than copied year after year.
Open these guides after using a calculator to understand the method, assumptions and real-world decision behind the result.
Human-friendly answers to common UK depreciation, residual value and HMRC capital allowance questions.
Start with the quick calculator above, then open the dedicated car, EV, van, business asset, HMRC capital allowances or commercial property tool for a more detailed schedule.
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