Equipment Depreciation (Farm) Calculator

Annual depreciation from price and annual hours.

Purchase price ($)

Current age (years)

Projection period (years)

Equipment type (1-3)

Annual usage (hours)

Salvage floor (%)

Tab to move between fields

Current market value ($)

$150,000.00

≈ 10 used cars

Future value ($)$65,158.00

Total depreciation ($)$84,842.00

Avg. annual depreciation ($)$8,484.00

Depreciation cost/hour ($)$16.97

% of purchase price remaining100

How to Use This Calculator

Enter Purchase Price and Current Age (years) of the equipment.
Select Equipment Type: Tractor (8%/yr), Combine (11.5%/yr), or Implement (10%/yr) — these are ASAE declining-balance rates.
Set Projection Period (years) to see future value, and Annual Usage (hours) for a per-hour depreciation cost.
Adjust Salvage Floor (%) if you plan to sell before the equipment reaches zero value.
Review Current Value, Future Value, Total Depreciation, Avg Annual Depreciation, and Depreciation Cost/Hour for budgeting.

How the result changes with Purchase price ($)

Purchase price ($): Original purchase price or current list price of the equipment.
Current age (years): Current age of the equipment in years. Enter 0 for new equipment.
Projection period (years): Number of years to project depreciation forward.
Equipment type (1-3): 1 = Tractor (8%/yr), 2 = Combine (11.5%/yr), 3 = Implement (10%/yr). ASAE declining-balance rates.
Annual usage (hours): Expected annual usage hours for per-hour depreciation cost.
Salvage floor (%): Minimum residual value as percentage of purchase price.

Current market value ($): Estimated current market value using ASAE declining-balance method.
Future value ($): Projected value at end of projection period.
Total depreciation ($): Total value lost over the projection period.
Avg. annual depreciation ($): Average depreciation expense per year.
Depreciation cost/hour ($): Depreciation cost allocated per operating hour.
% of purchase price remaining: Current value as percentage of original purchase price.

Identify Input Parameters
4 parameters
Purchase price ($) = 150000, Current age (years) = 0, Projection period (years) = 10, Equipment type (1-3) = 1 = 6 input(s) provided
Calculate Current market value
Current market value = purchasePrice * pow(1 - depRate, currentAge)
150000 = $150,000
Calculate Future value
Future value = max(salvageFloor, rawFutureValue)
65158 = $65,158
Calculate Total depreciation
Total depreciation
84842 = $84,842