ClarityHow to use this tool
- Enter opening book value, salvage value, useful life.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Opening book value | Numeric value. Unit: money. Must be greater than zero. | 10000 |
| Salvage value | Numeric value. Unit: money. Zero or positive. | 1000 |
| Useful life | Numeric value. Unit: years. Must be greater than zero. | 5 |
Result for these sample inputs
4000 currency units
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
Depreciation = min(opening book value × 2/life, opening book value − salvage).
Using opening book value = 10000 money, salvage value = 1000 money, useful life = 5 years, the result is 4000 currency. Change these example inputs to match your task; use the method above to check each step.
What to keep in mind
A scenario calculation using your inputs, before unlisted fees or taxes. It is not a quoted product rate or personalized recommendation.
Methodology maintained by ClarityKit. How these tools are built and checked.