Residual Value Calculator

✖Cost of fixed asset is the cost of assets and property that cannot easily be converted into cash.ⓘ Cost of fixed asset [C]			+10% -10%
✖Scrap Rate is the percentage of failed assemblies or material that cannot be repaired or restored and is therefore discarded.ⓘ Scrap Rate [SR]			+10% -10%
✖Lifespan is the estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.ⓘ Lifespan [LS]			+10% -10%

✖Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value.ⓘ Residual Value [RV]

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Formula

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Residual Value

Formula

`"RV" = ("C"-"SR")/"LS"`

Example

`"1.4E^-6"=("450"-"10")/"10Year"`

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Residual Value Solution

STEP 0: Pre-Calculation Summary

Formula Used

Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan
RV = (C-SR)/LS
This formula uses 4 Variables

Variables Used

Residual Value - Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value.
Cost of fixed asset - Cost of fixed asset is the cost of assets and property that cannot easily be converted into cash.
Scrap Rate - Scrap Rate is the percentage of failed assemblies or material that cannot be repaired or restored and is therefore discarded.
Lifespan - (Measured in Second) - Lifespan is the estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

STEP 1: Convert Input(s) to Base Unit

Cost of fixed asset: 450 --> No Conversion Required
Scrap Rate: 10 --> No Conversion Required
Lifespan: 10 Year --> 315569520 Second (Check conversion here)

STEP 2: Evaluate Formula

Substituting Input Values in Formula

RV = (C-SR)/LS --> (450-10)/315569520

Evaluating ... ...

RV = 1.3943044942997E-06

STEP 3: Convert Result to Output's Unit

1.3943044942997E-06 --> No Conversion Required

FINAL ANSWER

1.3943044942997E-06 ≈ 1.4E-6 <-- Residual Value

(Calculation completed in 00.004 seconds)

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Softusvista Office (Pune), India

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Bhilai Institute of Technology (BIT), Raipur

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< 23 Financial Accounting Calculators

DuPont Analysis

Go Return on Equity = (Net Income/Revenue)*(Revenue/Average Total Assets)*(Average Total Assets/Average Total Equity)

Internal Rate of Return

Go Net Present Value = sum(x,0,Number of Periods,((Cashflow at End Period/(1+Internal Rate of Return)^x)))-Initial Investment

Net Operating Cycle

Go Net Operating Cycle = ((365/Purchases)*Average Inventory)+((365/Net Receivables)*Average Accounts Receivables)

Discount Lost

Go Discount Lost = (Discount Percentage/(100-Discount Percentage))*(365/(Final Payment Date-Last Discount Date))

Annual Equivalent Cost

Go Annual Equivalent Cost = (Asset Price*Discount Rate)/(1-(1+Discount Rate)^-Number of Periods)

Net Present Value

Go Net Present Value = sum(x,1,Time Period,(Cash Flow/(1+Internal Rate of Return)^x))

Annual Percentage Yield

Go Annual Percentage Yield = (1+(Stated annual interest rate/Compounding Periods))^Compounding Periods-1

Effective Yield

Go Effective Yield = 1+(Nominal Rate/Number of Payments Per Year)^(Number of Payments Per Year)-1

Depletion Charge per Unit

Go Depletion Charge per Unit = (Original Cost-Residual Value)/Total Number of Units Depletion

Value of Stock

Go Value of Stock = Expected Dividend Per Share/(Cost of Capital Equity-Dividend Growth Rate)

Shareholders' Equity given Share Capital, Retained Earnings and Treasury Shares

Go Total Shareholders' Equity = Share Capital+Retained Earnings-Treasury Shares

Operating Cash Flow

Go Operating Cash Flow = Earnings Before Interest and Taxes+Depreciation-Taxes

EBITDA

Go EBITDA = Earnings Before Interest and Taxes+Depreciation+Amortization

Discount Percentage

Go Discount Percentage = ((List Price-Price Paid)/Price Paid)*100

Residual Value

Go Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan

Long term Debt to Equity ratio

Go Long Term Debt to Equity Ratio = Long Term Debt/Shareholders Fund

EBIT

Go Earnings Before Interest and Taxes = Revenue-Operating Expense

Depletion Expense

Go Depletion Expense = Depletion Charge per Unit*Units Consumed

Shareholders' Equity given Total Assets and Liabilities

Go Total Shareholders' Equity = Total Assets-Total Liabilities

Discount Factor

Go Discount Factor = 1/(1*(1+Discount Rate)^Number of Periods)

Discount given Discount Rate and List Price

Go Discount = Discount Rate*List Price

Discount given List Price and Price Paid

Go Discount = List Price-Price Paid

List Price

Go List Price = Price Paid+Discount

Residual Value Formula

Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan
RV = (C-SR)/LS

How to Calculate Residual Value?

Residual Value calculator uses Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan to calculate the Residual Value, Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value. Residual Value is denoted by RV symbol.

How to calculate Residual Value using this online calculator? To use this online calculator for Residual Value, enter Cost of fixed asset (C), Scrap Rate (SR) & Lifespan (LS) and hit the calculate button. Here is how the Residual Value calculation can be explained with given input values -> 1.4E-6 = (450-10)/315569520.

FAQ

What is Residual Value?

Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value and is represented as RV = (C-SR)/LS or Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan. Cost of fixed asset is the cost of assets and property that cannot easily be converted into cash, Scrap Rate is the percentage of failed assemblies or material that cannot be repaired or restored and is therefore discarded & Lifespan is the estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

How to calculate Residual Value?

Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value is calculated using Residual Value = (Cost of fixed asset-Scrap Rate)/Lifespan. To calculate Residual Value, you need Cost of fixed asset (C), Scrap Rate (SR) & Lifespan (LS). With our tool, you need to enter the respective value for Cost of fixed asset, Scrap Rate & Lifespan 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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