Salvage Value Calculator

How to Use the Salvage Value Calculator

This guide will walk you through the steps to effectively use the Salvage Value Calculator. Let’s get started!

Step 1: Enter Initial Asset Details

To calculate the salvage value, begin by filling in the initial asset cost:

• Initial Asset Cost: Enter the cost of the asset at the time of purchase. Make sure the value is a non-negative number and you can enter values as precise as two decimal places.

Step 2: Define Asset’s Useful Life

Next, determine the asset’s useful life in years:

• Useful Life (Years): Input the expected lifespan of the asset in years. This number should be between 1 and 100, and must be a whole number.

Step 3: Select a Depreciation Method

Choose the method of depreciation:

• Depreciation Method: Select either ‘Straight Line’ or ‘Declining Balance’. The straight line evenly depreciates the asset over its useful life, whereas the declining balance method accelerates depreciation.

Step 4: Specify the Depreciation Rate

If you chose the declining balance method, select a depreciation rate:

• Depreciation Rate (%): Choose an appropriate rate from the provided options which range from 10% to 50%.

Step 5: Review Calculated Results

Once you have entered all the required information, the calculator will provide the following results:

• Annual Depreciation: This shows the amount the asset depreciates each year, expressed in USD.
• Salvage Value: This is the estimated residual value of the asset after its useful life is fully exhausted, displayed in USD.
• Total Depreciation: The total amount the asset has depreciated over its useful life, shown in USD.
• Total Depreciation Percentage: This calculates the total depreciation as a percentage of the initial asset cost, expressed as a percentage.

By following these steps, you can effectively utilize the Salvage Value Calculator to determine the financial lifecycle and remaining value of an asset.