Vehicle Depreciation Calculator
Estimate your vehicle’s current value and depreciation using the IRDAI-style age-based schedule.
Formula last reviewed 4 August 2026 · How we verify our calculators
Estimated current value (IDV)
- Value lost to depreciation
- ₹2,00,000
- Depreciation applied
- 20.0%
Updates live as you type
Frequently asked questions
This uses the IRDAI-style age bands commonly applied to set IDV: 5% up to 6 months, 15% to 1 year, 20% to 2 years, 30% to 3 years, 40% to 4 years and 50% to 5 years.
The bands are upper-edge inclusive — a vehicle exactly 2 years old falls in the 1–2 year band at 20%. Beyond 5 years, value is usually mutually agreed between owner and insurer.
Insured Declared Value is your vehicle’s depreciated market value and the maximum a comprehensive policy pays on total loss or theft.
No. Resale value also depends on condition, mileage, brand demand and service history. This schedule is the insurance reference, useful as an approximate market value.
One extra year, ₹1,00,000 gone — and it only gets steeper early on
A ₹10,00,000 vehicle at exactly 2 years old falls into the "up to 2 years" band at 20% depreciation, putting its current value at 10,00,000 × 0.80 = ₹8,00,000 — ₹2,00,000 already depreciated away. Age the identical car to exactly 3 years, and it moves into the next band at 30%, dropping current value to ₹7,00,000 — a further ₹1,00,000 lost in just that one additional year. Depreciation front-loads heavily under this schedule: the early years cost far more in absolute value than the later ones.
The schedule behind these numbers
This uses the IRDAI-style age bands widely applied by insurers to set IDV: 5% up to six months, 15% to one year, 20% to two years, 30% to three years, 40% to four years, and 50% to five years. The bands are upper-edge inclusive, so a car exactly two years old sits in the 1–2 year band at 20%, not the next one up. Past five years, insurers and owners typically agree a value case by case rather than following a fixed schedule.
What this number is actually for
This figure is primarily an insurance reference used to set a fair IDV for a policy, not a market appraisal of what a buyer would actually pay. Real resale value also depends on the car's condition, kilometres driven, service history and how sought-after the specific model is in the used market — factors this fixed schedule can't see. Treat the result as an approximate reference value rather than a firm quote from a buyer, and pair it with the car insurance estimator, where this IDV figure is the direct starting point for calculating a premium.
Sources
- IRDAI — age-based depreciation schedule used to determine Insured Declared Value (IDV)