Select the type of furniture, purchase price, and the number of years owned to determine the current value due to furniture depreciation.

## Furniture Depreciation Formula

The following formula is used to calculate the total depreciation and current value of a piece of furniture.

CV = OP - (D/100*OP*A)
• Where CV is the current value of the furniture
• OP is the original price of the curniture
• D is the depreciation per year (%)
• A is the age of the furniture in years

## Furniture Depreciation Rates

The following table lists common depreciation rates for different types of furniture.

## Example Problem

How to calculate furniture depreciation?

1. First, determine the purchase price of the furniture.

For this example, we are looking at a sofa that was purchased at $1,000.00. 2. Next, determine the average depreciation rate per year. Looking at the table above, the depreciation rate for a sofa is found to be 7% per year on average. 3. Next, determine the age of the furniture. This furniture has been owned for 6 years. 4. Finally, calculate the current value of the furniture using the formula above. CV = OP – (D/100*OP*A) CV = 1000 – (7/100*1000*6) CV =$580.00.