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Construction Value Depreciated Calculator

Work out construction value depreciated instantly with clear inputs, formula shown and shareable results.

About Construction Value Depreciated Calculator

Valuers depreciate the structure but not the land, using straight line age-life depreciation on the amount above residual value. Remaining economic life is the figure lenders care about, because a loan term should not extend far beyond the useful life of the security.

Formulas

Straight line depreciation

Annual = (cost - residual) / economic life

Depreciated value

Value = cost - annual x age, floored at residual value

Worked example

With the default values below, Construction Value Depreciated Calculator returns Depreciated construction value of $2,800,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Original construction costminimum 0
4,000,000
Age of constructionminimum 0 years
20 years
Economic lifeminimum 1 years
60 years
Residual valueaccepts 0–50 %
10 %

Results

Depreciated construction value
$2,800,000.00
Annual depreciation
$60,000.00
Accumulated depreciation
$1,200,000.00
Remaining economic life
40.0 years

Step by step

  1. 1Values used
  2. 2Straight line depreciation
  3. 3Depreciated value
  4. 4Depreciated construction value= 2,800,000.00
  5. 5Annual depreciation= 60,000.00
  6. 6Accumulated depreciation= 1,200,000.00
  7. 7Remaining economic life= 40.0 years

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, tax or compounding frequency 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.

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

Frequently Asked Questions

How is the Construction Value Depreciated figure worked out?

Annual = (cost - residual) / economic life. Valuers depreciate the structure but not the land, using straight line age-life depreciation on the amount above residual value.

Why is residual value not zero?

Even at the end of its economic life a building has salvage and site clearance value, and it usually remains habitable. Ten percent is a common convention for reinforced concrete construction.

What values do I need to enter?

This calculator takes 4 inputs: Original construction cost, Age of construction, Economic life, Residual value. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.

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