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Salvage
Value Calculator
At the bottom you can find a Salvage Value Calculator. The
term means the
estimated value that an asset will get upon its sale at the end of its
useful life. This value is used in accounting to determine depreciation
amounts and to determine deductions. The value can be a guess
of the end value or can be determined by an official regulatory entity.
The value is obtained by the following
formula:
where:
S = salvage value
P = original price
i = nominal depreciation rate
Y = age in years
Car
Salvage Value  Example
What is the salvage value of Monique's highend car if it's four years
old, she bought it for $49,500 and it depreciates 23% annually?
Let's use our calculator and enter...
Original
Price = 49,500.00
Depreciation
rate = 23%
Number of
years = 4
the result is
Salvage Value
=
$17,400.76
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