Reverse Depreciation Calculator

When an asset depreciates over time, its value decreases due to age, wear and tear, or obsolescence. But sometimes, you need to know the original value of an asset before depreciation started. This is especially useful for:

• Asset recovery
• Insurance claims
• Financial reporting
• Tax calculations

That’s where a Reverse Depreciation Calculator comes in.

What is Reverse Depreciation?

Reverse depreciation is the process of working backward to estimate the initial value of an asset, based on its current (depreciated) value, depreciation rate, and number of years it has been depreciating.

Formula to Calculate Original Value

To reverse depreciation, we use the following formula based on compound depreciation:

Formula:

$\text{Original Value}=\frac{\text{Depreciated Value}}{(1-\text{Depreciation Rate}{)}^{\text{Years}}}$

Example Calculation

Let’s say:

• Current (Depreciated) Value = $5,000
• Annual Depreciation Rate = 10% (0.10)
• Number of Years = 3

Plug into the formula:

$\text{Original Value}=\frac{5000}{(1-0.10{)}^3}=\frac{5000}{{0.9}^3}=\frac{5000}{0.729}\approx 6853.63$

So, the original value of the asset was approximately $6,853.63.

Why This Matters

Understanding the original value of assets is important for:

• Accurate asset replacement planning
• Auditing and financial assessments
• Comparing investment depreciation

Try the Calculator

Use our online tool to quickly find out the original value of any asset. Just enter:

• Depreciated Value
• Annual Depreciation Rate
• Number of Years​​​​​​​