Enter the current value ($) and the depreciation percentage (%) into the Reverse Depreciation Calculator. The calculator will evaluate and display the initial value.
- All Reverse Calculators
- Reverse NPV Calculator
- Double Declining Depreciation Calculator
- Accumulated Depreciation Calculator
- Reverse Conversion Rate Calculator
Reverse Depreciation Formula
The following formula is used to calculate the Reverse Depreciation.
IV = CV / (1-D/100)
- Where IV is the initial value ($)
- 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) = ?
