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Residual Value Calculator

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Basics of Financial Accounting Asset Management

✖Cost of Fixed Asset is the cost of assets and property that cannot easily be converted into cash.ⓘ Cost of Fixed Asset [C]			+10% -10%
✖Scrap Rate is the percentage of failed assemblies or material that cannot be repaired or restored and is therefore discarded.ⓘ Scrap Rate [SR]			+10% -10%
✖Lifespan is the estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.ⓘ Lifespan [LS]			+10% -10%

✖Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value.ⓘ Residual Value [RV]

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Formula

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Residual Value

Formula

RV = \frac{C - SR}{LS}

Example

1.4E-6 = \frac{450 - 10}{10 Year}

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Residual Value Solution

STEP 0: Pre-Calculation Summary

Formula Used

Residual Value = (Cost of Fixed Asset-Scrap Rate)/Lifespan
RV = (C-SR)/LS
This formula uses 4 Variables

Variables Used

Residual Value - Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value.
Cost of Fixed Asset - Cost of Fixed Asset is the cost of assets and property that cannot easily be converted into cash.
Scrap Rate - Scrap Rate is the percentage of failed assemblies or material that cannot be repaired or restored and is therefore discarded.
Lifespan - (Measured in Second) - Lifespan is the estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

STEP 1: Convert Input(s) to Base Unit

Cost of Fixed Asset: 450 --> No Conversion Required
Scrap Rate: 10 --> No Conversion Required
Lifespan: 10 Year --> 315569520 Second (Check conversion here)

STEP 2: Evaluate Formula

Substituting Input Values in Formula

RV = (C-SR)/LS --> (450-10)/315569520

Evaluating ... ...

RV = 1.3943044942997E-06

STEP 3: Convert Result to Output's Unit

1.3943044942997E-06 --> No Conversion Required

FINAL ANSWER

1.3943044942997E-06 ≈ 1.4E-6 <-- Residual Value

(Calculation completed in 00.004 seconds)

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Residual Value Formula

Residual Value = (Cost of Fixed Asset-Scrap Rate)/Lifespan
RV = (C-SR)/LS

How to Calculate Residual Value?

Residual Value calculator uses Residual Value = (Cost of Fixed Asset-Scrap Rate)/Lifespan to calculate the Residual Value, Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value. Residual Value is denoted by RV symbol.

How to calculate Residual Value using this online calculator? To use this online calculator for Residual Value, enter Cost of Fixed Asset (C), Scrap Rate (SR) & Lifespan (LS) and hit the calculate button. Here is how the Residual Value calculation can be explained with given input values -> 1.4E-6 = (450-10)/315569520.

FAQ

What is Residual Value?

Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value and is represented as RV = (C-SR)/LS or Residual Value = (Cost of Fixed Asset-Scrap Rate)/Lifespan. Cost of Fixed Asset is the cost of assets and property that cannot easily be converted into cash, Scrap Rate is the percentage of failed assemblies or material that cannot be repaired or restored and is therefore discarded & Lifespan is the estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

How to calculate Residual Value?

Residual value is a leasing method, which signifies the future value of an asset in terms of depreciation percentage of the asset's basic value is calculated using Residual Value = (Cost of Fixed Asset-Scrap Rate)/Lifespan. To calculate Residual Value, you need Cost of Fixed Asset (C), Scrap Rate (SR) & Lifespan (LS). With our tool, you need to enter the respective value for Cost of Fixed Asset, Scrap Rate & Lifespan and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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