Select the type of furniture, purchase price, and the number of years owned to determine the current value due to furniture depreciation.
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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.
|Type of Furniture||Depreciation Rate Per Year (%)|
|Faux Wood Furniture||14|
How to calculate furniture depreciation?
- First, determine the purchase price of the furniture.
For this example, we are looking at a sofa that was purchased at $1,000.00.
- 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.
- Next, determine the age of the furniture.
This furniture has been owned for 6 years.
- 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.