Appliance Depreciation Calculator

Formula

Yearly depreciation = (purchase price − residual value) ÷ useful life; remaining value stops at the chosen residual value.

Worked example

With Original price: 1200 currency units, Estimated residual value: 10 %, Estimated useful life: 8 years, Age: 3 years, estimated current value is 795.00 currency units.

Inputs and calculation

Convert the residual percentage into a currency amount, spread the remaining depreciable cost evenly across useful years, and subtract elapsed depreciation from purchase price. The model stops decreasing at the specified residual floor. The displayed relationship is Yearly depreciation = (purchase price − residual value) ÷ useful life; remaining value stops at the chosen residual value. Keep the fields' displayed units attached when reproducing this relationship by hand.

Worked numerical example

For example, enter original price 1,200 currency units, estimated residual value 10 %, estimated useful life 8 years, age 3 years. Those inputs produce estimated current value of 795 currency units. The same values also give straight-line yearly loss 135 currency units.

Holding the other example values fixed, change original price from 1,200 to 1,320 currency units. The main output becomes 874.5 currency units. This comparison isolates the effect of that one input.

How to read and use the result

This is a planning value for an appliance, not a resale offer or tax deduction. The yearly figure describes an even accounting allocation rather than the market's actual price path. Compare replacement timing or household asset estimates using one consistent depreciation convention.

Practical context

For an appliance bought for 1,200 with a 10% residual assumption, the amount allocated to depreciation is 1,080. Across eight useful years that is 135 per year, and after three years the straight-line carrying estimate is 795.

Assumptions and scope

Wear is assumed linear over the selected life and a residual percentage is supplied by the user. Repair history, brand, warranty, energy efficiency and local secondhand demand are omitted. Replace the example defaults with measured inputs for your situation and account separately for factors outside these fields.

Checks and common mistakes

Do not present a straight-line estimate as an appraisal. Entering a three-year age and an eight-year useful life does not prove the appliance has exactly five years of reliable operation left.

Common questions

What should I verify before using the Appliance Depreciation Calculator result?

A working refrigerator could sell for much less or more than that figure depending on condition and collection costs. If you are comparing replacement with continued use, add expected repairs and electricity consumption separately; neither is a depreciation input.