Percentage Rate of Annual Depreciation Calculator

✖Scrap Value is the worth of a physical asset's individual components when the asset itself is deemed no longer usable.ⓘ Scrap Value [S_c]			+10% -10%
✖Original Cost is the total cost associated with the purchase of an asset.ⓘ Original Cost [OC]			+10% -10%

✖Percentage Rate of Annual Depreciation is used in constant percentage method which relates the scrap value, original cost and life of property.ⓘ Percentage Rate of Annual Depreciation [P]

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Formula

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Percentage Rate of Annual Depreciation

Formula

`"P" = 1-("S"_{"c"}/"OC")`

Example

`"0.9"=1-("350"/"3500")`

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Percentage Rate of Annual Depreciation Solution

STEP 0: Pre-Calculation Summary

Formula Used

Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost)
P = 1-(S_c/OC)
This formula uses 3 Variables

Variables Used

Percentage Rate of Annual Depreciation - Percentage Rate of Annual Depreciation is used in constant percentage method which relates the scrap value, original cost and life of property.
Scrap Value - Scrap Value is the worth of a physical asset's individual components when the asset itself is deemed no longer usable.
Original Cost - Original Cost is the total cost associated with the purchase of an asset.

STEP 1: Convert Input(s) to Base Unit

Scrap Value: 350 --> No Conversion Required
Original Cost: 3500 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

P = 1-(S_c/OC) --> 1-(350/3500)

Evaluating ... ...

P = 0.9

STEP 3: Convert Result to Output's Unit

0.9 --> No Conversion Required

FINAL ANSWER

0.9 <-- Percentage Rate of Annual Depreciation

(Calculation completed in 00.004 seconds)

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Created by Chandana P Dev

NSS College of Engineering (NSSCE), Palakkad

Chandana P Dev has created this Calculator and 500+ more calculators!

Verified by Mithila Muthamma PA

Coorg Institute of Technology (CIT), Coorg

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< 17 Valuation Engineering Calculators

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Go Annual Installment = Sinking Fund*Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)

Coefficient of Annual Sinking Fund

Go Coefficient of Sinking Fund = Rate of Interest/((1+Rate of Interest)^Number of Years Money is Invested-1)

Annual Sinking Fund using Sinking Fund Method

Go Annual Sinking Fund = Rate of Interest/((1+Rate of Interest)^Life of Asset in Years-1)

Percentage Rate of Annual Depreciation

Go Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost)

Years Purchase when Sinking Fund is Recovered

Go Years Purchase = 1/(Rate of Interest on Capital+Rate of Sinking Fund)

Rate of Sinking Fund given YP

Go Rate of Sinking Fund = (1/Years Purchase)-Rate of Interest on Capital

Coefficient of Annual Sinking Fund given Sinking Fund

Go Coefficient of Sinking Fund = Annual Installment/Sinking Fund

Annual Installment given Sinking Fund

Go Annual Installment = Coefficient of Sinking Fund*Sinking Fund

Sinking Fund for Buildings

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Go Capitalized Value = Net Rental Income*Years Purchase

Capitalized Value

Go Capitalized Value = Net Rental Income*Years Purchase

Gross Rent given Net Rent in Rental Method

Go Gross Rent = Net Rental Income+Outgoings of Repairs

Net Rent using Rental Method of Valuation

Go Net Rental Income = Gross Rent-Outgoings of Repairs

Outgoings using Rental Method

Go Outgoings of Repairs = Gross Rent-Net Rental Income

Net Income using Profit Based Valuation

Go Net Income = Gross Income-Outgoings of Repairs

Rate of Interest given Years Purchase

Go Rate of Interest = 100/Years Purchase

Years Purchase

Go Years Purchase = 100/Rate of Interest

Percentage Rate of Annual Depreciation Formula

Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost)
P = 1-(S_c/OC)

What is Scrap Value?

Scrap value is the market price that can be obtained for the individual components of an asset. This value is derived when the owner of an asset is deciding whether to incur costs to maintain it or to stop maintaining it, tear it down, and sell the parts. The scrap value of an item can vary substantially over time, based on the supply of and demand for it.

How to Calculate Percentage Rate of Annual Depreciation?

Percentage Rate of Annual Depreciation calculator uses Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost) to calculate the Percentage Rate of Annual Depreciation, The Percentage Rate of Annual Depreciation formula is defined as the standard yearly rate at which depreciation is charged to a fixed asset. This rate is consistent from year to year if the straight-line method is used. Percentage Rate of Annual Depreciation is denoted by P symbol.

How to calculate Percentage Rate of Annual Depreciation using this online calculator? To use this online calculator for Percentage Rate of Annual Depreciation, enter Scrap Value (S_c) & Original Cost (OC) and hit the calculate button. Here is how the Percentage Rate of Annual Depreciation calculation can be explained with given input values -> 0.9 = 1-(350/3500).

FAQ

What is Percentage Rate of Annual Depreciation?

The Percentage Rate of Annual Depreciation formula is defined as the standard yearly rate at which depreciation is charged to a fixed asset. This rate is consistent from year to year if the straight-line method is used and is represented as P = 1-(S_c/OC) or Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost). Scrap Value is the worth of a physical asset's individual components when the asset itself is deemed no longer usable & Original Cost is the total cost associated with the purchase of an asset.

How to calculate Percentage Rate of Annual Depreciation?

The Percentage Rate of Annual Depreciation formula is defined as the standard yearly rate at which depreciation is charged to a fixed asset. This rate is consistent from year to year if the straight-line method is used is calculated using Percentage Rate of Annual Depreciation = 1-(Scrap Value/Original Cost). To calculate Percentage Rate of Annual Depreciation, you need Scrap Value (S_c) & Original Cost (OC). With our tool, you need to enter the respective value for Scrap Value & Original Cost 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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