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 ($) halved
cost = 25000 (from 50000)
Keep every other input at its default and halve the cost ($). See how depreciation responds.
- 01New Cost ($): 25000
- 02Baseline Depreciation: 6750
- 03New Depreciation: 3000
- 04Depreciation decreases by 55.6% → use this sensitivity to plan for real-world variation.
02 · PATTERN
Cost ($) doubled
cost = 100000 (from 50000)
Keep every other input at its default and double the cost ($). See how depreciation responds.
- 01New Cost ($): 100000
- 02Baseline Depreciation: 6750
- 03New Depreciation: 14250
- 04Depreciation increases by 111.1% → use this sensitivity to plan for real-world variation.
03 · PATTERN
Salvage ($) halved
salvage = 2500 (from 5000)
Keep every other input at its default and halve the salvage ($). See how depreciation responds.
- 01New Salvage ($): 2500
- 02Baseline Depreciation: 6750
- 03New Depreciation: 7125
- 04Depreciation increases by 5.6% → use this sensitivity to plan for real-world variation.
04 · PATTERN
Salvage ($) doubled
salvage = 10000 (from 5000)
Keep every other input at its default and double the salvage ($). See how depreciation responds.
- 01New Salvage ($): 10000
- 02Baseline Depreciation: 6750
- 03New Depreciation: 6000
- 04Depreciation decreases by 11.1% → use this sensitivity to plan for real-world variation.