Depreciation
Calculator  online spreadsheet
Depreciation Rate and Amount

Economic
depreciation
involves two different but related ideas: the decline in value of
assets, and the allocation of the cost of assets to periods in which
the assets are used. The first concept affects values of businesses;
the second concept affects income.
The depreciation calculator below helps you study two common
problems:

a) Depreciation Rate of
an investment. You must
provide
the original price of the item, its resale price, and its age in
years. The
depreciation
rate is calculated by the following formula:
where:
T
=
resale price
P
=
original price
Y
= age
D
=
depreciation rate
b) Depreciation Amount.
You must provide the original price, the depreciation rate and the
years of depreciation. The
depreciation amount is claulated by the following formula:
where:
D
=
depreciation amount
P
=
original price
i =
depreciation rate
Y
=
year of depreciation
Calculate Depreciation Rate
Let's
imagine that happy Julie bought her car for $50,000 and sold it for
only
$24,325 three years later. What was the actual depreciation rate?
We use one of the possibilities of our calculator...
Depreciation
Rate
Original
Price = 50,000.00
Resale
Price = 24,325.00
Years = 3
and we can read the answer
Depreciation
Rate = 21.35%
Calculate Depreciation Amount
If
Julie's computer had an original price of $4,933.76. This particular
hightech laptop depreciates at an average annual rate of 21%. What
amount has the laptop depreciated in the first two years?
We use now the other section of our calculator...
Depreciation
Amount
Original
Price = 4,933.76
Depreciation
rate = 21.00
Year of
depreciation = 1
an the first reading is
Depreciation
this year
= 1,036.09
We just change the year of depreciation in the spreadsheet
Year of
depreciation = 2
and our second reading is
Depreciation
this year
= 818.51
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