Salvage Value Formula

To determine depreciation amounts and deductions in accountings, salvage value is used. The salvage value formula on this page will guide you to calculate the value of salvage by reducing the interest rate with one and powering it with the year value and at last multiplying the powered value with the original price. This salvage price used in accounting is mainly for determining the depreciation amounts and in the tax system to determine the deductions.


Salvage Value = P(1-i)y


P = Original Price
i = Depreciation Rate
y = Number of Years

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The above salvage value formula on this page will be a useful one to determine the estimated salvage value that the owner is paid when the item is sold at the end of its useful life.

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