To calculate the old bike price, you can follow these steps¹:

1. Find the purchase price of the bicycle (MSRP).
2. Estimate the life expectancy of the bike. On average most bicycles have a lifespan of 5 years.
3. Divide the purchase price by the life of the bike. (You can also factor in the initial drop in price for the first year)
4. Subtract the loss in value from the original purchase price.

Alternatively, you can use the following formula to calculate the resale value of the bike²:Resale Value = (Bike price / 2) x 0.9nWhere n = bike age -1Here we see that the base price is halved, which is the high end of the typical depreciation rate of a cycle after a year. 0.9n represents an additional 10% depreciation for each year older a bike is beyond the first year.