How it is calculated
You choose the percent. A typical 10–20% a year is a household guess, not a valuation table.
Price = initial × (1 − percent) ^ years
Where the numbers come from
- Price now
- Decline per year — unit in the field: %
- Years
Example
1 000 000 currency units minus 15% a year for 3 years leave about 614 125 currency units.
Questions
Is the first year larger than the rest?
Not in this model. There is one factor. If you want a step, work through the years one by one with different percents.
Straight-line depreciation of a company?
It lives in another calculator: equal amounts, not equal percents.
Mileage?
It is not included. Two years at the same percent give one price, whatever the mileage.