Depreciation Rate of Machine Tool 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%
✖Amortization Period is the useful time over which the intangible cost of a machine has been spread.ⓘ Amortization Period [P_Amortization]			+10% -10%

✖Depreciation Rate is the rate at which the machine is depreciated across the estimated productive life of the machine.ⓘ Depreciation Rate of Machine Tool [M_t]

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Formula

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Depreciation Rate of Machine Tool

Formula

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

Example

`"0.104167"="1000"/("1200"*"8")`

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Depreciation Rate of Machine Tool Solution

STEP 0: Pre-Calculation Summary

Formula Used

Depreciation Rate = Initial Cost of the Machine/(Number of Working Hours per Year*Amortization Period)
M_t = C_machine/(N_wh*P_Amortization)
This formula uses 4 Variables

Variables Used

Depreciation Rate - Depreciation Rate is the rate at which the machine is depreciated across the estimated productive life of the machine.
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.
Amortization Period - Amortization Period is the useful time over which the intangible cost of a machine has been spread.

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
Amortization Period: 8 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

M_t = C_machine/(N_wh*P_Amortization) --> 1000/(1200*8)

Evaluating ... ...

M_t = 0.104166666666667

STEP 3: Convert Result to Output's Unit

0.104166666666667 --> No Conversion Required

FINAL ANSWER

0.104166666666667 ≈ 0.104167 <-- Depreciation Rate

(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)

Depreciation Rate of Machine Tool Formula

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

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 Depreciation Rate of Machine Tool?

Depreciation Rate of Machine Tool calculator uses Depreciation Rate = Initial Cost of the Machine/(Number of Working Hours per Year*Amortization Period) to calculate the Depreciation Rate, The Depreciation Rate of Machine Tool is the actual decrease of the fair value of a machine over time due to its usage and wears for the time it was used for production. Depreciation Rate is denoted by M_t symbol.

How to calculate Depreciation Rate of Machine Tool using this online calculator? To use this online calculator for Depreciation Rate of Machine Tool, enter Initial Cost of the Machine (C_machine), Number of Working Hours per Year (N_wh) & Amortization Period (P_Amortization) and hit the calculate button. Here is how the Depreciation Rate of Machine Tool calculation can be explained with given input values -> 0.104167 = 1000/(1200*8).

FAQ

What is Depreciation Rate of Machine Tool?

The Depreciation Rate of Machine Tool is the actual decrease of the fair value of a machine over time due to its usage and wears for the time it was used for production and is represented as M_t = C_machine/(N_wh*P_Amortization) or Depreciation Rate = Initial Cost of the Machine/(Number of Working Hours per Year*Amortization Period). 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 & Amortization Period is the useful time over which the intangible cost of a machine has been spread.

How to calculate Depreciation Rate of Machine Tool?

The Depreciation Rate of Machine Tool is the actual decrease of the fair value of a machine over time due to its usage and wears for the time it was used for production is calculated using Depreciation Rate = Initial Cost of the Machine/(Number of Working Hours per Year*Amortization Period). To calculate Depreciation Rate of Machine Tool, you need Initial Cost of the Machine (C_machine), Number of Working Hours per Year (N_wh) & Amortization Period (P_Amortization). With our tool, you need to enter the respective value for Initial Cost of the Machine, Number of Working Hours per Year & Amortization Period and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Depreciation Rate?

In this formula, Depreciation Rate uses Initial Cost of the Machine, Number of Working Hours per Year & Amortization Period. We can use 1 other way(s) to calculate the same, which is/are as follows -

Depreciation Rate = (Machining and Operating Rate-(Wage Rate*(100+Operator's Overhead Percentage)/100))*100/(100+Machine Overhead Percentage)

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