The purchase price of a luxury watch tells you almost nothing about what it actually costs to own. A $15,000 Rolex can cost less per year than a $3,000 fashion watch. Here's the math — and the watches that cost the least to wear every day.
Imagine two watches: Watch A costs $12,000 and appreciates 2% per year. Watch B costs $4,000 and depreciates 15% per year. After five years, Watch A is worth $13,250 — you've made $1,250. Watch B is worth $1,780 — you've lost $2,220. The "expensive" watch was actually free to own, while the "affordable" watch cost you $444 per year. This is why cost of ownership, not purchase price, is the metric that matters for luxury watches.
The largest factor by far. We model annual value change based on the watch's current market position relative to retail and historical brand/collection trends. Our three tiers: watches trading significantly above retail get -1.3% annual depreciation (they appreciate), watches trading near retail get 2% depreciation, and watches trading well below retail get 6% depreciation. These rates reflect observed 5-year averages across our database.
For a $14,000 watch that appreciates at -1.3%, that's a $182 annual gain. For a $4,000 watch depreciating at 6%, that's a $240 annual loss. The difference — $422 per year — dwarfs servicing and insurance costs combined.
Every mechanical watch requires periodic service — disassembly, cleaning, lubrication, regulation, and water resistance testing. We amortize the full service cost across the manufacturer's recommended interval. Rolex recommends every 10 years at ~$800, yielding $80/year. Omega recommends every 5-8 years at ~$600, yielding $80-120/year. Patek Philippe services cost $1,500-3,000 but intervals are long, resulting in $200-400/year. Quartz watches have minimal service needs — battery changes every 2-3 years at $30-50.
Calculated at 1.5% of market value per year, which reflects prevailing rates from specialty watch insurers for an all-risk policy covering theft, loss, and accidental damage. For a $14,000 watch, that's $210/year. For a $4,000 watch, $60/year. Insurance is optional but strongly recommended for any watch worn daily — a single incident without coverage would cost you the full market value.
Annual Cost = (Market Price × Depreciation Rate) + Amortized Service + Insurance
When depreciation is negative (the watch appreciates), the appreciation offsets service and insurance costs, sometimes resulting in a net annual cost near zero — meaning the watch is essentially free to own.
These watches cost the least per year when factoring in all three components.
| # | Watch | Market Price | Depreciation | Service/Yr | Insurance/Yr | Total/Yr |
|---|---|---|---|---|---|---|
| 1 | Rolex Oyster Perpetual 126000 | $8,250 | -1.3% | $80 | $124 | $97 |
| 2 | Rolex Air-King 126900 | $9,500 | -1.3% | $80 | $143 | $99 |
| 3 | Rolex Explorer 124270 | $9,750 | -1.3% | $80 | $146 | $100 |
| 4 | Rolex Oyster Perpetual 124300 | $10,250 | -1.3% | $80 | $154 | $101 |
| 5 | Rolex Datejust 126300 | $11,000 | -1.3% | $80 | $165 | $102 |
| 6 | Rolex Datejust 126234 | $12,000 | -1.3% | $80 | $180 | $104 |
| 7 | Rolex Submariner 124060 | $12,500 | -1.3% | $80 | $188 | $105 |
| 8 | Rolex Explorer 226570 | $12,250 | -1.3% | $80 | $184 | $105 |
| 9 | Rolex Datejust 126334 | $13,500 | -1.3% | $80 | $203 | $107 |
| 10 | Rolex Sea-Dweller 126600 | $13,500 | -1.3% | $80 | $203 | $107 |
| Watch | Market | Depreciation | Total/Yr |
|---|---|---|---|
| A. Lange & Söhne Lange 1 191.032 | $35,000 | 6% | $2745/yr |
| Audemars Piguet Royal Oak Offshore 26470ST.OO.A027CA.01 | $36,000 | 6% | $2820/yr |
| Rolex Submariner 126618LN | $38,500 | 6% | $3008/yr |
| Patek Philippe Grand Complications 5320G-001 | $102,500 | 2% | $3708/yr |
| Patek Philippe Grand Complications 5270P-001 | $215,000 | 2% | $7645/yr |
To put ownership costs in perspective, here's what common everyday expenses cost per year: a daily coffee habit at $5/day is $1,825/year. A gym membership averages $600/year. A streaming bundle (Netflix + Spotify + Disney+) runs about $400/year. Many of the top-scoring watches in our database cost less per year to own than a gym membership — and unlike a gym membership, you still have the watch at the end.
See the full methodology page for complete technical documentation of our models.