Salvage Value Calculator
Estimate what your equipment will be worth at end of life. Compare across asset categories with industry benchmark rates.
Share of its remaining value the asset loses each year. Auto-suggested based on category. Adjust to match your specific situation.
Estimated Salvage Value
$5,933
Value Over Time
Industry Benchmark Comparison
Salvage value of a $25,000 asset after 5 years by category
| Category | Annual Rate | Salvage Value |
|---|---|---|
| Computers & Electronics | 25% | $5,933 |
| Vehicles | 15% | $11,093 |
| Office Furniture | 10% | $14,762 |
| Heavy Equipment & Machinery | 7% | $17,392 |
| Medical Equipment | 12% | $13,193 |
| Lab & Scientific Instruments | 10% | $14,762 |
| AV & Media Equipment | 20% | $8,192 |
Know what your equipment is worth
Shelf tracks every asset's value, location, and custody with QR codes and automatic logs. Free forever for individuals.
Start tracking freeUnderstanding 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.
How this calculator estimates it: each year the asset loses the same share of its remaining value (declining-balance depreciation), so salvage value = purchase price × (1 − annual rate)years. At 25% a year, a $25,000 computer is worth about $5,933 after five years ($25,000 × 0.755).
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. This calculator's estimate shrinks every year without ever reaching zero, though it shows as $0 once it falls below 50 cents. If you expect to scrap or write off an asset, plan on zero instead.
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.
Related Solutions
Track equipment value and lifecycle with Shelf.
Ready to organize your assets?
Join thousands of teams who trust Shelf to manage their physical assets. Free forever, or try the Team plan free for 7 days.
Out in the field? Shelf Companion is free on iPhone & Android.