Processing math: 100%

Asset Depletion Calculator

Formula

The formula to calculate the Asset Depletion (AD) is:

$AD = \frac{TA}{P}$

Where:

$AD$ is the Asset Depletion ($/month)
$TA$ is the total assets ($)
$P$ is the total time period (months)

Asset Depletion Definition

Asset depletion is a method used to determine the monthly income generated from liquidating assets over a specified period. It is commonly used in financial planning and mortgage qualification processes.

Example Calculation

Let's consider an example:

Total Assets (TA): $120,000
Total Time Period (P): 60 months

Using the formula to calculate the Asset Depletion:

$AD = \frac{120000}{60} = 2000 \, \text{\$/month}$

This demonstrates that with total assets of $120,000 and a time period of 60 months, the asset depletion would be $2,000 per month.