Residual Value Calculator

Calculate Residual Value





Formula

To calculate the residual value:

\[ RV = C - (C \times D \times A) \]

Where:

What is Residual Value?

A residual value is defined as the total worth of an object or asset after a certain time period of use has passed. This is typically used when describing depreciating assets like cars or appliances. The residual value can help determine the asset's value for resale, accounting purposes, or financial planning.

Example Calculation

Let's assume the following values:

Use the formula:

\[ RV = 20000 - (20000 \times 0.10 \times 5) = 20000 - (20000 \times 0.50) = 20000 - 10000 = 10000 \]

The residual value of the asset after 5 years is $10,000.