The price of a laptop depreciates by 15% each year. If the original price is $1,200, what is its value after 3 years?

Fri, 01 May 2026 09:50:21 +0000

**Why the Price of a Laptop Loses Value by 15% Each Year — and What It Means for Your Investment** In today’s fast-moving tech landscape, many homeowners and tech buyers ask: What happens to a laptop’s value when it’s been in use for a few years? With technology advancing quickly, laptops rapidly lose resale worth—often about 15% annually. If you purchased a laptop for $1,200, understanding this depreciation helps shape smarter buying and long-term financial choices. This annual drop isn’t magic—it’s shaped by real market dynamics. As new models emerge with upgraded processors, better batteries, and enhanced performance, older machines struggle to keep pace. Buyers increasingly demand cutting-edge specs, shifting demand away from used units. Combined with faster innovation cycles, this creates consistent downward pressure on resale prices. So, if your $1,200 laptop hasn’t changed hands in three years, its current market value hovers around $823, based on standard depreciation models. While depreciation rates can vary by brand, usage, and market demand, the 15% annual figure reflects broad trends observed across consumer electronics.