How to use this calculator
This calculator estimates what a home appliance is worth today using the straight-line depreciation method, the same simple, widely-used approach used for basic asset accounting. Enter the purchase price, an estimated salvage value, the appliance's total useful life in years, and how long you have owned it, then click Calculate. Click Clear to reset all fields to the example values.
The formula
Straight-line depreciation assumes an asset loses the same dollar amount of value every year. Annual depreciation equals (Purchase Price − Salvage Value) ÷ Useful Life. Total depreciation to date is the annual amount multiplied by the appliance's current age (capped at the useful life, since an asset cannot depreciate below its salvage value). Current value is simply the purchase price minus that accumulated depreciation.
Understanding the inputs
Purchase price is what you originally paid. Salvage value is your best estimate of what the appliance could be sold or scrapped for once its useful life ends — use $0 if it will simply be discarded. Useful life is how many years the appliance is expected to remain functional; check the manufacturer's specifications or a standard reference range for the appliance type. Current age is how many years you have owned or used it so far.
Interpreting the results
Current Value and Annual Depreciation are the headline numbers: what the appliance is worth today and how much value it loses per year under this model. Total Depreciation shows the cumulative loss in value since purchase, and Remaining Useful Life shows how many years remain before the appliance reaches its salvage value. Once the current age reaches the useful life, current value settles at the salvage value and stays there.