Diminishing Rate Calculator

Formula

To calculate the Diminishing Rate ($DR$):

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

Where:

$DR$ is the Diminishing Rate ($/year)
$DV$ is the total Diminished Value ($)
$A$ is the total Age (years)

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:

Total Diminished Value ($DV$) = $10,000
Total Age ($A$) = 5 years

Using the formula:

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

The Diminishing Rate is $2000 per year.

Example Calculation 2

Let's assume the following values:

Total Diminished Value ($DV$) = $15,000
Total Age ($A$) = 3 years

Using the formula:

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

The Diminishing Rate is $5000 per year.