Vehicle Depreciation Calculator

What is Vehicle Depreciation?

Depreciation is the fall in a vehicle's value as it ages and is used. A car or bike is worth less every year than what you paid for it, and the sharpest drop usually happens in the first year. This calculator estimates the current value using the reducing balance method and also shows an insurance IDV figure based on the IRDAI schedule.

Depreciation Formula

Value = Purchase Price × (1 - rate)^years

For example, a car bought for ₹10,00,000 at a 15% yearly rate is worth about ₹4,43,705 after 5 years, a loss of roughly ₹5,56,295. The percentage is applied to the value at the start of each year, so the rupee loss is biggest early and smaller later.

IRDAI Depreciation for IDV

Insurers fix your IDV using this standard grid:

• Up to 6 months: 5%
• 6 months to 1 year: 15%
• 1 to 2 years: 20%
• 2 to 3 years: 30%
• 3 to 4 years: 40%
• 4 to 5 years: 50%
• Over 5 years: mutually agreed with the insurer

Tips to Slow Down Depreciation

• Keep the service history complete and stamped
• Drive fewer kilometres where possible and maintain the vehicle well
• Choose a model and brand with strong resale demand
• Fix dents and keep the interiors clean before you sell