Free salvage value calculator
Estimate what an asset is worth at the end of its useful life. Enter the purchase price, useful life, and a depreciation rate — start from a typical rate for the asset category, then adjust — and read the residual value, total depreciation, and the book value year by year. No sign-up, nothing uploaded.
Estimate salvage value
Pick an asset category to load a typical depreciation rate, then adjust any field. Everything runs in your browser.
- Total depreciation
- $20,798.25
- Value retained
- 16.81%
| Year | Book value |
|---|---|
| 0 | $25,000 |
| 1 | $17,500 |
| 2 | $12,250 |
| 3 | $8,575 |
| 4 | $6,002.50 |
| 5 | $4,201.75 |
Salvage value — also called residual value — is the estimated amount an asset is worth once it reaches the end of its useful life: what you expect to recover by selling or scrapping it. It sets the floor that depreciation writes down to, so a higher salvage value means less total depreciation each year.
This calculator uses a declining-balance estimate:
salvage = purchase price × (1 − annual rate) ^ useful life
The rate that fits an asset depends on how fast it loses value — electronics and vehicles fall quickly, furniture and heavy machinery hold value longer. The category presets load a typical rate as a starting point; adjust it to match the asset's condition, maintenance history, market demand, and the risk of obsolescence.
The rates below are estimates for planning, not accounting advice. For US tax depreciation, salvage value is handled differently — MACRS depreciates to a zero basis using fixed IRS tables. Use the MACRS depreciation calculator for the tax schedule, or the depreciation calculator to run straight-line, declining balance, or sum-of-years'-digits book methods where salvage value is a direct input.
Typical 5-year salvage value by asset category
Projected salvage on a $25,000 asset after 5 years, by category:
| Asset category | Annual rate | 5-year salvage |
|---|---|---|
| Computers & IT equipment | 30% | $4,201.75 |
| AV & media equipment | 20% | $8,192.00 |
| Vehicles & fleet | 18% | $9,268.50 |
| Power tools & equipment | 15% | $11,092.63 |
| Medical equipment | 12% | $13,193.30 |
| Lab & scientific instruments | 12% | $13,193.30 |
| Heavy machinery | 10% | $14,762.25 |
| Office furniture | 10% | $14,762.25 |
| Other / general | 15% | $11,092.63 |
Whichever rate you use, the estimate is only as good as the asset record behind it. UNIO24 keeps purchase price, in-service date, useful life, and category on every asset and rolls book value forward automatically. See the asset management module for how the data is captured, and the asset disposal glossary entry for what happens at end of life.
Salvage value — common questions
Edge cases the calculator does not spell out.
How do I estimate the salvage value of an asset?
Start from a typical annual depreciation rate for the asset category, then adjust for condition, maintenance history, and how much demand there is for the asset used. The calculator applies the rate on a declining balance across the useful life. When you have real resale data — auction results, trade-in quotes, dealer buy-back — use that figure directly instead of the estimate.Can salvage value be zero?
Yes. Assets with no resale or scrap market — most software, heavily customized fixtures, or equipment depreciated past any residual worth — are often assigned a salvage value of zero. US tax depreciation under MACRS always depreciates to a zero basis regardless of expected resale.
Want salvage and book value tracked automatically on every asset? Talk to sales
