Asset Depletion Calculator

Calculate Asset Depletion



Formula

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

\[ AD = \frac{TA}{P} \]

Where:

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:

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.