Amortization given Depreciation Rate Solution

STEP 0: Pre-Calculation Summary
Formula Used
Amortization Period = Initial Cost of the Machine/(Number of Working Hours per Year*Depreciation Rate)
AP = Cmachine/(Nwh*Mt)
This formula uses 4 Variables
Variables Used
Amortization Period - Amortization Period is the useful time over which the intangible cost of a machine has been spread.
Initial Cost of the Machine - Initial Cost of the Machine is the total cost after ordering, buying, acquiring, and installment a machine.
Number of Working Hours per Year - Number of Working Hours per Year is the total number of hours a machine has been used for production processes.
Depreciation Rate - Depreciation Rate is the rate at which the machine is depreciated across the estimated productive life of the machine.
STEP 1: Convert Input(s) to Base Unit
Initial Cost of the Machine: 1000 --> No Conversion Required
Number of Working Hours per Year: 1200 --> No Conversion Required
Depreciation Rate: 0.1 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
AP = Cmachine/(Nwh*Mt) --> 1000/(1200*0.1)
Evaluating ... ...
AP = 8.33333333333333
STEP 3: Convert Result to Output's Unit
8.33333333333333 --> No Conversion Required
FINAL ANSWER
8.33333333333333 8.333333 <-- Amortization Period
(Calculation completed in 00.004 seconds)

Credits

Created by Kumar Siddhant
Indian Institute of Information Technology, Design and Manufacturing (IIITDM), Jabalpur
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15 Estimation for Optimal Conditions Calculators

Time to Index Insert given Tool Changing Time for Disposable-Insert Tool
Go Time to Insert Index = (Time to Change One Tool*Average Number of Cutting Edges used per Insert-Time to Replace Index)/(Average Number of Cutting Edges used per Insert-1)
Estimated Tool Changing Time for Disposable-Insert Tool
Go Time to Change One Tool = (Time to Insert Index*(Average Number of Cutting Edges used per Insert-1)+Time to Replace Index)/Average Number of Cutting Edges used per Insert
Time to Replace Insert given Tool Changing Time for Disposable-Insert Tool
Go Time to Replace Index = Time to Change One Tool*Average Number of Cutting Edges used per Insert-Time to Insert Index*(Average Number of Cutting Edges used per Insert-1)
Depreciation Rate of Machine Tool given Machining and Operating Rate
Go Depreciation Rate = (Machining and Operating Rate-(Wage Rate*(100+Operator's Overhead Percentage)/100))*100/(100+Machine Overhead Percentage)
Operator's Overhead Percentage given Machining and Operating Rate
Go Operator's Overhead Percentage = ((Machining and Operating Rate-(Depreciation Rate*(100+Machine Overhead Percentage)/100))*100/Wage Rate)-100
Machine Overhead Percentage given Machining and Operating Rate
Go Machine Overhead Percentage = ((Machining and Operating Rate-(Wage Rate*(100+Operator's Overhead Percentage)/100))*100/Depreciation Rate)-100
Average Cutting Edges per insert given Tool Changing Time
Go Average Number of Cutting Edges used per Insert = (Time to Replace Index-Time to Insert Index)/(Time to Change One Tool-Time to Insert Index)
Operator's Wage Rate given Machining and Operating Rate
Go Wage Rate = (Machining and Operating Rate-(Depreciation Rate*(100+Machine Overhead Percentage)/100))*100/(100+Operator's Overhead Percentage)
Machining and Operating Rate
Go Machining and Operating Rate = (Wage Rate*(100+Operator's Overhead Percentage)/100)+(Depreciation Rate*(100+Machine Overhead Percentage)/100)
Cutting Edges used during Life of Holder given Estimated Tool Costs
Go Cutting Edges used during Life of Holder = Cost of the Holder/(Tool Cost-(Cost of Insert/Average Number of Cutting Edges used per Insert))
Average Cutting Edges used per insert given Estimated Tool Costs
Go Average Number of Cutting Edges used per Insert = Cost of Insert/(Tool Cost-(Cost of the Holder/Cutting Edges used during Life of Holder))
Working Hours per year given Depreciation Rate
Go Number of Working Hours per Year = Initial Cost of the Machine/(Amortization Period*Depreciation Rate)
Amortization given Depreciation Rate
Go Amortization Period = Initial Cost of the Machine/(Number of Working Hours per Year*Depreciation Rate)
Depreciation Rate of Machine Tool
Go Depreciation Rate = Initial Cost of the Machine/(Number of Working Hours per Year*Amortization Period)
Average Number of Regrinds Possible, given Estimated Tool Costs
Go Average Number of Regrinds Possible = Cost of a Tool/(Tool Cost-Cost of Grinding)

Amortization given Depreciation Rate Formula

Amortization Period = Initial Cost of the Machine/(Number of Working Hours per Year*Depreciation Rate)
AP = Cmachine/(Nwh*Mt)

Amortization vs. Depreciation

Amortization and depreciation are two methods of calculating the value of business assets. A business will calculate these expense amounts in order to use them as a tax deduction and reduce their tax liability. Amortization is the practice of spreading an intangible asset's cost over that asset's useful life. Depreciation is the expensing of a fixed asset over its useful life.

How to Calculate Amortization given Depreciation Rate?

Amortization given Depreciation Rate calculator uses Amortization Period = Initial Cost of the Machine/(Number of Working Hours per Year*Depreciation Rate) to calculate the Amortization Period, Amortization given Depreciation Rate is a method to determine the estimated time period over which the cost of the machine can be spread when the Depreciation Rate is known. Amortization Period is denoted by AP symbol.

How to calculate Amortization given Depreciation Rate using this online calculator? To use this online calculator for Amortization given Depreciation Rate, enter Initial Cost of the Machine (Cmachine), Number of Working Hours per Year (Nwh) & Depreciation Rate (Mt) and hit the calculate button. Here is how the Amortization given Depreciation Rate calculation can be explained with given input values -> 8.333333 = 1000/(1200*0.1).

FAQ

What is Amortization given Depreciation Rate?
Amortization given Depreciation Rate is a method to determine the estimated time period over which the cost of the machine can be spread when the Depreciation Rate is known and is represented as AP = Cmachine/(Nwh*Mt) or Amortization Period = Initial Cost of the Machine/(Number of Working Hours per Year*Depreciation Rate). Initial Cost of the Machine is the total cost after ordering, buying, acquiring, and installment a machine, Number of Working Hours per Year is the total number of hours a machine has been used for production processes & Depreciation Rate is the rate at which the machine is depreciated across the estimated productive life of the machine.
How to calculate Amortization given Depreciation Rate?
Amortization given Depreciation Rate is a method to determine the estimated time period over which the cost of the machine can be spread when the Depreciation Rate is known is calculated using Amortization Period = Initial Cost of the Machine/(Number of Working Hours per Year*Depreciation Rate). To calculate Amortization given Depreciation Rate, you need Initial Cost of the Machine (Cmachine), Number of Working Hours per Year (Nwh) & Depreciation Rate (Mt). With our tool, you need to enter the respective value for Initial Cost of the Machine, Number of Working Hours per Year & Depreciation Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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