Appliance Depreciation Calculator

Appliance Depreciation Calculator

Typical: Refrigerator (12), Washer (10), Oven (15)

Value at the end of its life (usually 0 or scrap value)

Calculation Results

Estimated Current Value: $0.00

Total Depreciation to Date: $0.00

Annual Depreciation Expense: $0.00

Remaining Useful Life: 0 years

function calculateDepreciation() { var price = parseFloat(document.getElementById('purchasePrice').value); var age = parseFloat(document.getElementById('applianceAge').value); var lifespan = parseFloat(document.getElementById('expectedLifespan').value); var salvage = parseFloat(document.getElementById('salvageValue').value); if (isNaN(price) || isNaN(age) || isNaN(lifespan) || price <= 0 || lifespan (price – salvage)) { totalDepreciation = price – salvage; } var currentValue = price – totalDepreciation; var remainingLife = lifespan – age; if (remainingLife < 0) { remainingLife = 0; } document.getElementById('currentValueResult').innerText = "$" + currentValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('totalDepreciationResult').innerText = "$" + totalDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('annualDepreciationResult').innerText = "$" + annualDepreciation.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('remainingLifeResult').innerText = remainingLife.toFixed(1); document.getElementById('resultsArea').style.display = "block"; }

Understanding Appliance Depreciation

Whether you are filing an insurance claim, selling a used home, or calculating tax deductions for a rental property, understanding appliance depreciation is essential. Appliances, like most mechanical assets, lose value over time due to wear and tear, technological obsolescence, and age.

How Does Appliance Depreciation Work?

This calculator uses the Straight-Line Depreciation Method. This is the most common method used by the IRS and insurance companies to spread the cost of an asset evenly over its estimated useful life. The formula is simple:

Annual Depreciation = (Purchase Price – Salvage Value) / Useful Lifespan

Typical Lifespan of Common Household Appliances

To get an accurate result, you need to know how long an appliance is expected to last. According to industry standards, here are the average lifespans:

Appliance Type	Average Lifespan (Years)
Gas Range / Oven	15 Years
Refrigerator	12 Years
Clothes Washer	10 Years
Dryer (Electric/Gas)	12 Years
Dishwasher	9 Years
Microwave	7 Years

Real-World Example Calculation

Suppose you bought a high-end refrigerator for $2,000 four years ago. You expect it to last 10 years and believe you could sell it for $200 in scrap/parts at the end of its life.

• Depreciable Base: $2,000 – $200 = $1,800
• Annual Depreciation: $1,800 / 10 years = $180 per year
• Total Depreciation (4 years): $180 × 4 = $720
• Current Market Value: $2,000 – $720 = $1,280

Why Track Appliance Value?

1. Insurance Claims: If your home suffers damage, insurance companies often pay the "Actual Cash Value" (ACV), which is the replacement cost minus depreciation.
2. Rental Property Taxes: Landlords can deduct the depreciation of appliances as a business expense over a 5-year recovery period (IRS Publication 527).
3. Selling a Home: Knowing the depreciated value helps in negotiating "move-in" costs or including appliances in the sale price.
4. Budgeting: Tracking the age of your appliances helps you predict when a major replacement expense is coming.