A Furniture Depreciation Calculator helps you figure out how much your furniture has decreased in value since you bought it. Over time, all items lose value due to regular use, wear and tear, or becoming outdated. This calculator uses a clear formula to show the current worth of your furniture, especially useful for:
- Insurance claims
- Tax deduction calculations
- Resale evaluations
- Business accounting and auditing
Whether you’re a homeowner, interior designer, office manager, or accountant, this tool offers quick and reliable results. It saves you time by giving you exact numbers instead of estimating on your own.
Formula
Straight-Line Method (SLM)
The Straight-Line Method is the most common and easy-to-use approach for calculating depreciation.
- Annual Depreciation Expense = (Cost of Asset − Salvage Value) / Useful Life
- Current Value = Cost of Asset − (Annual Depreciation Expense × Years Owned)
Variables Explained
| Variable | Description |
|---|---|
| Cost of Asset | Original purchase price of the furniture |
| Salvage Value | Estimated value of furniture at the end of its use |
| Useful Life | Expected life span of the furniture in years |
| Years Owned | Number of years the furniture has been in use |
This method assumes depreciation is equal each year and does not change based on usage level or repairs.
Furniture Depreciation Table
The table below shows general depreciation values over time for various types of furniture assuming a useful life of 10 years and no salvage value.
| Furniture Type | Purchase Price | Years Owned | Depreciated Value | Current Value |
|---|---|---|---|---|
| Office Chair | $300 | 5 years | $150 | $150 |
| Wooden Desk | $800 | 3 years | $240 | $560 |
| Sofa Set | $1,500 | 7 years | $1,050 | $450 |
| Bookshelf | $200 | 2 years | $40 | $160 |
Note: This table is a quick reference and assumes straight-line depreciation with zero salvage value. Adjust values for exact calculations.
Useful Conversions
| Conversion Type | From | To | Conversion Formula |
|---|---|---|---|
| Years to Months | Years | Months | Years × 12 |
| Monthly Depreciation | Annual Depreciation | Monthly Value Loss | Annual ÷ 12 |
| Salvage Percentage | Salvage Value | % of Cost | (Salvage ÷ Cost) × 100 |
Example
Let’s say you bought a dining table for $1,000. You expect to use it for 10 years, and at the end, you think it will be worth $100. You’ve used it for 4 years.
- Annual Depreciation Expense = (1000 – 100) / 10 = $90 per year
- Current Value = 1000 – (90 × 4) = $640
So after 4 years, your dining table is worth about $640.
Most Common FAQs
This calculator gives an estimate based on the straight-line method. While it’s widely accepted and easy to use, actual depreciation may vary depending on usage, quality, and market value.
Yes, businesses often use depreciation calculators to determine furniture value for accounting and tax deductions. However, it’s important to follow your local tax laws or consult with a tax advisor.
Most furniture does depreciate over time, especially items that are used daily. However, antiques or high-end custom furniture may increase in value depending on rarity and condition.