Reverse Depreciation Calculator

Formula

To calculate the initial value ($IV$):

\[ IV = \frac{CV}{1 - \frac{D}{100}} \]

Where:

$IV$ is the initial value ($)
$CV$ is the current value ($)
$D$ is the depreciation percentage (%)

What is Reverse Depreciation?

Reverse depreciation is the process of calculating the original value of an asset before it depreciated. This is useful for understanding the initial investment value or for financial reporting purposes. The formula used for this calculation takes the current value and adjusts it based on the depreciation rate.

Example Calculation 1

Let's assume the following values:

Current Value ($CV$) = $5000
Depreciation Percentage ($D$) = 20%

Using the formula:

\[ IV = \frac{5000}{1 - \frac{20}{100}} = \frac{5000}{0.80} = 6250 \]

The initial value is $6250.

Example Calculation 2

Let's assume the following values:

Current Value ($CV$) = $3000
Depreciation Percentage ($D$) = 15%

Using the formula:

\[ IV = \frac{3000}{1 - \frac{15}{100}} = \frac{3000}{0.85} \approx 3529.41 \]

The initial value is approximately $3529.41.