How this calculator works
The declining-balance method applies the same percentage loss to whatever value remains each year, rather than to the original price. That's why the very first year loses the most money even though every year uses the same rate.
Common values
| Original price (₩) | Estimated current value |
|---|---|
| 3,000,000 ₩ | ₩1,536,000 |
| 7,500,000 ₩ | ₩3,840,000 |
| 15,000,000 ₩ | ₩7,680,000 |
| 30,000,000 ₩ | ₩15,360,000 |
| 45,000,000 ₩ | ₩23,040,000 |
| 60,000,000 ₩ | ₩30,720,000 |
| 90,000,000 ₩ | ₩46,080,000 |
| 150,000,000 ₩ | ₩76,800,000 |
| 300,000,000 ₩ | ₩153,600,000 |
More detail
Why the first year hurts the most
At a 20% annual rate, a 30,000,000 won car loses 6,000,000 won in year one — but in year two it loses 20% of the now-lower 24,000,000 won balance, which is only 4,800,000 won. The percentage stays constant, but because it's applied to a shrinking base, the money lost keeps getting smaller each year.
Rate varies. There's no single official depreciation rate — it depends heavily on the make, model, and how well the car holds resale value in your market. Popular, reliable models often depreciate slower than the 15–25% per year commonly assumed for an average car.
Frequently asked questions
What is a 30,000,000 won car worth after 3 years at 20% annual depreciation?
Current value = 30,000,000 × 0.8³ = 15,360,000 won, meaning total depreciation of 14,640,000 won over the 3 years.
Why does the amount of money lost shrink every year even though the rate stays the same?
Because the declining-balance method applies the rate to last year's remaining value, not the original price. As the remaining value gets smaller, the same percentage produces a smaller amount lost.
Does a higher depreciation rate always mean a lower resale value?
Only once at least a year has passed. At 0 years elapsed nothing has been multiplied yet, so 15% and 25% both return the full original price. From year one on the higher rate compounds faster — starting from the same 30,000,000, 25% a year leaves about 7,119,000 after 5 years against about 13,311,000 at 15%.