Enter the total diminished value ($) and the total age (years) into the Calculator. The calculator will evaluate the Diminishing Rate. 

Diminishing Rate Formula

DR = DV / A

Variables:

  • DV is the Diminishing Rate ($/year)
  • DV is the total diminished value ($)
  • A is the total age (years)

To calculate the Diminishing Rate, divide the total diminished value by the total age in years.

How to Calculate Diminishing Rate?

The following steps outline how to calculate the Diminishing Rate.

  1. First, determine the total diminished value ($). 
  2. Next, determine the total age (years). 
  3. Next, gather the formula from above = DR = DV / A.
  4. Finally, calculate the Diminishing Rate.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

total diminished value ($) = 5774

total age (years) = 3