• CV is the current value ($) • D is the depreciation percentage (%) To calculate the reverse depreciation, divide the current value by the result of 1 minus the depreciation rate. ## How to Calculate Reverse Depreciation? The following example problems outline how to calculate Reverse Depreciation. Example Problem #1: 1. First, determine the current value ($).
• The current value ($) is given as: 500. 2. Next, determine the depreciation percentage (%). • The depreciation percentage (%) is provided as: 30. 3. Finally, calculate the Reverse Depreciation using the equation above: IV = CV / (1-D/100) The values given above are inserted into the equation below and the solution is calculated: IV = 500 / (1-30/100) = 714.285 ($)

Example Problem #2:

For this problem, the variables required are provided below:

current value (\$) = 600

depreciation percentage (%) = 20