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Salvage Value Calculator

Estimate what your equipment will be worth at end of life. Compare across asset categories with industry benchmark rates.

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Auto-suggested based on category. Adjust to match your specific situation.

Estimated Salvage Value

$0

Total Depreciation: $25,000
Value Retained: 0%
Depreciation (100%)Salvage (0%)

Value Over Time

$0$5K$10K$15K$21KYr 1Yr 2Yr 3Yr 4Yr 5

Industry Benchmark Comparison

Salvage value of a $25,000 asset after 5 years by category

CategoryAnnual RateSalvage Value
Computers & Electronics25%$0
Vehicles15%$6,250
Office Furniture10%$12,500
Heavy Equipment & Machinery7%$16,250
Medical Equipment12%$10,000
Lab & Scientific Instruments10%$12,500
AV & Media Equipment20%$0

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Understanding Salvage Value

Salvage value (also called residual value or scrap value) is the estimated worth of an asset at the end of its useful life. It affects how much depreciation you can claim over the asset's lifetime.

  • Higher salvage value means lower total depreciation expense — the asset retains more value.
  • Factors that affect it: condition, maintenance history, market demand, technological obsolescence, and brand reputation.
  • For tax purposes, MACRS assumes zero salvage value — you recover the full cost. See our MACRS Calculator.
  • For book purposes, salvage value reduces the depreciable base. Use our Equipment Depreciation Calculator for full schedules.

Frequently Asked Questions

How do I estimate salvage value?

Check resale markets for similar equipment at the age you plan to retire it. Factor in condition, maintenance, and market demand. Our category benchmarks provide a starting point based on industry averages.

Can salvage value be zero?

Yes. Some assets (especially technology) may have zero or near-zero salvage value if they become obsolete. For MACRS tax depreciation, salvage value is always treated as zero.

What's the difference between salvage and scrap value?

Salvage value is what the asset is worth if sold as a working item. Scrap value is what the raw materials are worth if the asset is dismantled. Scrap value is typically much lower.

Should I use these benchmarks for accounting?

These benchmarks are estimates based on general industry data. For financial statements and tax filings, consult your accountant who can consider your specific equipment, usage patterns, and applicable standards.

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