Amortization given Depreciation Rate Calculator

✖Initial Cost of the Machine is the total cost after ordering, buying, acquiring, and installment a machine.ⓘ Initial Cost of the Machine [C_machine]			+10% -10%
✖Number of Working Hours per Year is the total number of hours a machine has been used for production processes.ⓘ Number of Working Hours per Year [N_wh]			+10% -10%
✖Depreciation Rate is the rate at which the machine is depreciated across the estimated productive life of the machine.ⓘ Depreciation Rate [M_t]			+10% -10%

✖Amortization Period is the useful time over which the intangible cost of a machine has been spread.ⓘ Amortization given Depreciation Rate [P_Amortization]

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Formula

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Amortization given Depreciation Rate

Formula

`"P"_{"Amortization"} = "C"_{"machine"}/("N"_{"wh"}*"M"_{"t"})`

Example

`"8.333333"="1000"/("1200"*"0.1")`

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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)
P_Amortization = C_machine/(N_wh*M_t)
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

P_Amortization = C_machine/(N_wh*M_t) --> 1000/(1200*0.1)

Evaluating ... ...

P_Amortization = 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)

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Created by Kumar Siddhant

Indian Institute of Information Technology, Design and Manufacturing (IIITDM), Jabalpur

Kumar Siddhant has created this Calculator and 400+ more calculators!

Verified by Parul Keshav

National Institute of Technology (NIT), Srinagar

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< 4 Depreciation Rate Calculators

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)

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)

Amortization given Depreciation Rate Formula

Amortization Period = Initial Cost of the Machine/(Number of Working Hours per Year*Depreciation Rate)
P_Amortization = C_machine/(N_wh*M_t)

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 P_Amortization 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 (C_machine), Number of Working Hours per Year (N_wh) & Depreciation Rate (M_t) 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 P_Amortization = C_machine/(N_wh*M_t) 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 (C_machine), Number of Working Hours per Year (N_wh) & Depreciation Rate (M_t). 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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