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

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 (%) 

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

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

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