Appliance Depreciation Calculator
— Select Appliance —
Refrigerator (13 years)
Dishwasher (9 years)
Washing Machine (10 years)
Clothes Dryer (13 years)
Gas Range/Oven (15 years)
Electric Range (13 years)
Microwave (9 years)
Freezer (10 years)
Window Air Conditioner (6 years)
Central Air Conditioner (15 years)
Water Heater – Tank (10 years)
Water Heater – Tankless (20 years)
Other / Manual Entry
The total expected lifespan of the appliance.
How long you have owned the appliance.
The estimated value at the end of its useful life (often $0).
Depreciation Report
Original Price:
$0.00
Annual Depreciation:
$0.00
Total Depreciation to Date:
$0.00
Remaining Useful Life:
0 years
Current Actual Cash Value (ACV):
$0.00
About Appliance Depreciation
Understanding the value of your household appliances is crucial for various financial situations, including filing insurance claims after a disaster, calculating tax deductions for rental properties, or determining a fair resale price on the secondary market. Appliances are depreciating assets, meaning they lose value over time due to wear and tear and obsolescence.
How This Calculator Works
This calculator utilizes the Straight-Line Depreciation Method, which is the standard model used by insurance adjusters and accounting principles for household goods. This method assumes that the asset loses value evenly over its useful lifespan.
The formula used is:
Current Value = Cost – [(Cost – Salvage Value) / Useful Life × Age]
Common Appliance Life Expectancy
To accurately calculate depreciation, you need to know the expected useful life of your appliance. Below is a reference table based on data from the National Association of Home Builders (NAHB) and major manufacturers.
| Appliance | Average Life Span (Years) |
|---|---|
| Refrigerator | 13 |
| Dishwasher | 9 |
| Washing Machine | 10 |
| Dryer (Electric/Gas) | 13 |
| Range/Oven (Gas) | 15 |
| Range/Oven (Electric) | 13 |
| Microwave Oven | 9 |
| HVAC System | 15-20 |
| Water Heater (Tank) | 10-12 |
Why Calculate Appliance Depreciation?
- Insurance Claims: When filing a claim for fire, flood, or theft, insurance companies typically pay the Actual Cash Value (ACV), which is the replacement cost minus depreciation. Knowing this number helps you negotiate fair settlements.
- Resale Value: If you are selling a home with appliances included, or selling used appliances individually, this calculation gives you a baseline for a fair asking price.
- Rental Property Taxes: Landlords can often deduct the depreciation of appliances provided in rental units as a business expense over a set recovery period (typically 5 years under MACRS in the US, though this calculator uses straight-line for general estimation).
What is Salvage Value?
Salvage value is the estimated book value of an asset after depreciation is complete. For most small household appliances, the salvage value is effectively $0, as they usually have no resale value once they stop working. However, for high-end commercial appliances or items with significant scrap metal value, you might assign a small salvage amount.