Asset Disposal Value Calculator

Work out asset disposal value instantly with clear inputs, formula shown and shareable results.

About Asset Disposal Value Calculator

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.

Formulas

Market value

Market value = Original cost x (1 - Annual decline rate)^Age

Net proceeds

Net = Market value - Disposal costs and fees

Worked example

With the default values below, Asset Disposal Value Calculator returns Net disposal proceeds of $2,238,758.91. Change any input above and every figure here is recalculated in your browser.

Inputs used

Original cost: 8,400,000
Age at disposal: 7
Annual market value decline: 16
Disposal costs, removal and auction fees: 240,000

Results

Net disposal proceeds: $2,238,758.91
Estimated market value: $2,478,758.91
Proportion of original cost retained: 29.51%
Disposal costs as % of market value: 9.68%

Step by step

1Values used
2Market value
3Net proceeds
4Net disposal proceeds= 2,238,758.91
5Estimated market value= 2,478,758.91
6Proportion of original cost retained= 29.51
7Disposal costs as % of market value= 9.68

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or tax into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
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.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

What decline rate should I use?

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 is disposal not worth it?

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.