Constant Percentage Method of Depreciation

BV_t = C * [(1 - dr)^t]

Where:
dr = depreciation rate
N = number of years of expected life
S = Salvage value
C = Initial cost price
BV_t = Book value of the asset at the end of year t.
t = the given year of the asset's depreciation process

This calculator is used to find the amount of money an asset (something that you own or have earned) is worth each year based on its value of depreciation.

As with Declining Balance and Sum-of-the-Years' Digits methods, in the Constant Percentage method, depreciation is greatest in the early years of the asset's life.

N is the estimated number of years that the asset can be used (a light bulb that is said to last five years has an N of 5.)

S, the salvage value of the asset, is the amount of money that it is estimated to be worth when it is no longer useful.

C is the original amount of money that the asset is worth. This can be, but isn't always the amount you paid for it (sometimes it's worth more or less than you paid for it.)

BV_t (the book value of the asset at the end of year t)is the amount of money that the asset is worth at the end of a given year (t) in the process of the asset's depreciation. For example, the BV₃of a light bulb is equal to the amount of money that the light bulb is worth after its third year of use. If the light bulb cost $1.79 and depreciated by 80 cents its first year of life its BV₁ would be 99 cents

To use our calculator, enter the number of years of expected life, salvage value, and initial cost price in their respective boxes and press "Solve."