Enter the purchase price and current salvage value of the boat into the calculator to determine the boat’s depreciation.

Boat Depreciation Formula

The following formula is used to calculate boat depreciation. 

D = (OP - SV) / OP * 100
  • Where D is the boat depreciation (%)
  • OP is the original purchase price ($)
  • SV is the salvage value ($)

To calculate the boat depreciation, divide the difference between the original price and the current salvage value by the original value, then multiply by 100 to get the depreciation in percentage.

What is boat depreciation?

Definition:

A boat depreciation, just like any other depreciation, is the total percentage of value lost on the boat over time due to wear and tear and current market conditions.

How to calculate boat depreciation?

Example Problem:

The following example problem outlines how to calculate a boat depreciation.

First, determine the original purchase price of the boat. In this example, the original price was $50,000.00.

Next, determine the salvage value. This is the value that the boat could currently be sold for. In this case, the salvage value is $25,000.00.

Finally, calculate the boat depreciation as a percent using the formula above:

D = (OP – SV) / OP * 100

D = (50000 – 250000) / 50000 * 100

D = 25%

FAQ

What factors influence boat depreciation?

Several factors can influence boat depreciation, including the boat’s age, make and model, usage, maintenance history, and overall condition. Market trends and demand for certain types of boats can also significantly affect depreciation rates.

Can boat depreciation be slowed down?

Yes, boat depreciation can be slowed down with proper maintenance, regular servicing, and keeping the boat in good condition. Upgrading features and ensuring the boat meets current market demands can also help retain its value over time.

Is boat depreciation the same for all types of boats?

No, boat depreciation varies widely among different types of boats. Factors such as the boat’s construction material (e.g., fiberglass vs. aluminum), size, brand, and model play a significant role in determining its depreciation rate. Luxury yachts, for instance, may depreciate differently than smaller fishing boats or speedboats.