Work out asset disposal value instantly with clear inputs, formula shown and shareable results.
Disposal value follows geometric decay from original cost, and the net proceeds are that value less removal, refurbishment and auction or brokerage fees. Those costs are proportionally largest on low-value assets, where they can exceed the proceeds entirely.
Market value
Market value = Original cost x (1 - Annual decline rate)^Age
Net proceeds
Net = Market value - Disposal costs and fees
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.
From observed auction results for the asset class: 12-18% a year for industrial plant, 25-35% for IT equipment, 15-20% for commercial vehicles.
When removal and disposal costs exceed the proceeds, which is common for fixed plant. Then the decision is about avoiding ongoing holding cost, not realising value.