Enter the current value ($) and the depreciation percentage (%) into the Reverse Depreciation Calculator. The calculator will evaluate and display the initial value.

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## Reverse Depreciation Formula

The following formula is used to calculate the Reverse Depreciation.

IV = CV / (1-D/100)

- Where IV is the initial value ($)
- CV is the current value ($)
- D is the depreciation percentage (%)

To calculate the reverse depreciation, divide the current value by the result of 1 minus the depreciation rate.

## How to Calculate Reverse Depreciation?

The following example problems outline how to calculate Reverse Depreciation.

Example Problem #1:

- First, determine the current value ($).
- The current value ($) is given as: 500.

- Next, determine the depreciation percentage (%).
- The depreciation percentage (%) is provided as: 30.

- Finally, calculate the Reverse Depreciation using the equation above:

IV = CV / (1-D/100)

The values given above are inserted into the equation below and the solution is calculated:

IV = 500 / (1-30/100) = 714.285 ($)

Example Problem #2:** **

For this problem, the variables required are provided below:

current value ($) = 600

depreciation percentage (%) = 20

Test your knowledge using the equation and check your answer with the calculator above.

IV = CV / (1-D/100)** = ?**