The formula gets rearranged depending on which variable you need. Here are the patterns you’ll run into in the real world — find the one that matches your problem and follow the worked steps.
01 · PATTERN
Cost ($) halved
cost = 10000 (from 20000)
Keep every other input at its default and halve the cost ($). See how annual depreciation responds.
- 01New Cost ($): 10000
- 02Baseline Annual depreciation: 1800
- 03New Annual depreciation: 800
- 04Annual depreciation decreases by 55.6% → use this sensitivity to plan for real-world variation.
02 · PATTERN
Cost ($) doubled
cost = 40000 (from 20000)
Keep every other input at its default and double the cost ($). See how annual depreciation responds.
- 01New Cost ($): 40000
- 02Baseline Annual depreciation: 1800
- 03New Annual depreciation: 3800
- 04Annual depreciation increases by 111.1% → use this sensitivity to plan for real-world variation.
03 · PATTERN
Salvage ($) halved
salvage = 1000 (from 2000)
Keep every other input at its default and halve the salvage ($). See how annual depreciation responds.
- 01New Salvage ($): 1000
- 02Baseline Annual depreciation: 1800
- 03New Annual depreciation: 1900
- 04Annual depreciation increases by 5.6% → use this sensitivity to plan for real-world variation.
04 · PATTERN
Salvage ($) doubled
salvage = 4000 (from 2000)
Keep every other input at its default and double the salvage ($). See how annual depreciation responds.
- 01New Salvage ($): 4000
- 02Baseline Annual depreciation: 1800
- 03New Annual depreciation: 1600
- 04Annual depreciation decreases by 11.1% → use this sensitivity to plan for real-world variation.