# Appliance Depreciation Calculator

## Appliance Depreciation Calculator

Enter any 2 values to calculate the missing variable

How do you determine the current value of your home appliances as they age? The Appliance Depreciation Calculator can help you to estimate the value of your appliances over time. Enter the replacement cost, age of the appliance, and depreciation rate into the calculator to find the current value.

### What Is Appliance Depreciation?

Appliance depreciation is the decrease in value of an appliance over time due to wear and tear, age, and usage. It helps you understand how much value your appliance has lost since its purchase.

### How to Use the Calculator

To use the Appliance Depreciation Calculator, follow these simple steps:

**Enter Replacement Cost ($):**Input the original purchase price of the appliance. For example, if your dishwasher cost $1,000, enter`1000`

.**Enter Age (years):**Input the number of years you have owned the appliance. For example, if you have had it for 3 years, enter`3`

.**Select an Appliance:**Choose the type of appliance from the dropdown menu. Each appliance has a different depreciation rate.**Enter Current Value ($):**If applicable, input the current market value of the appliance. Otherwise, leave this field empty for the calculator to estimate.

### Formula and Variables

The formula used to calculate the current value of an appliance is:

$\text{CurrentValue}=\text{ReplacementCost}\times (1-\text{DepreciationRate}{)}^{\text{Age}}$

Here are the variables used in the calculation:

Variable | Description |
---|---|

Replacement Cost | The original purchase price of the appliance |

Age | The number of years the appliance has been used |

Depreciation Rate | The annual depreciation rate of the appliance |

Current Value | The estimated current value of the appliance |

### Calculation Examples

Let’s go through two example calculations using random input values.

#### Example 1: Calculating Appliance Depreciation

**Replacement Cost ($):**800**Age (years):**5**Appliance:**Refrigerator (6.5%/yr)

**Calculation Steps:**

- Enter
`800`

as the Replacement Cost. - Enter
`5`

as the Age. - Select
`Refrigerator`

from the dropdown menu. - Click “Calculate” to find the current value.
- The calculator uses the formula:

$\text{CurrentValue}=800\times (1-0.065{)}^{5}$

$=800\times 0.682\approx 545.60$ - The result displayed is: “Current Value: $545.60”.

#### Example 2: Calculating Appliance Depreciation

**Replacement Cost ($):**1200**Age (years):**3**Appliance:**Dishwasher (12.40%/yr)

**Step-by-Step Calculation:**

- Enter
`1200`

as the Replacement Cost. - Enter
`3`

as the Age. - Select
`Dishwasher`

from the dropdown menu. - Click “Calculate” to find the current value.
- The calculator uses the formula:

$\text{CurrentValue}=1200\times (1-0.124{)}^{3}$

$=1200\times 0.684\approx 820.80$ - The result displayed is: “Current Value: $820.80”.

### Final Words

I hope you likes the Appliance Depreciation Calculator and found it useful. How was your experience using the tool? If you encountered any errors or have suggestions, please report them on our “Report an Error” page. We value your feedback and look forward to hearing from you.