Diminishing Rate Calculator

Calculate Diminishing Rate



Formula

To calculate the Diminishing Rate (\(DR\)):

\[ DR = \frac{DV}{A} \]

Where:

What is Diminishing Rate?

The diminishing rate refers to the rate at which the value of an asset decreases over time. It is calculated by dividing the total diminished value by the total age in years.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ DR = \frac{10000}{5} = 2000 \]

The Diminishing Rate is $2000 per year.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ DR = \frac{15000}{3} = 5000 \]

The Diminishing Rate is $5000 per year.