depreciation

American  

[dih-pree-shee-ey-shuhn] / dɪˌpri ʃiˈeɪ ʃən /

noun

1. decrease in value due to wear and tear, decay, decline in price, etc.

2. such a decrease as allowed in computing the value of property for tax purposes.

3. a decrease in the purchasing or exchange value of money.

4. a lowering in estimation.

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depreciation British  

/ dɪˌpriːʃɪˈeɪʃən /

noun

1. accounting

   1. the reduction in value of a fixed asset due to use, obsolescence, etc

   2. the amount deducted from gross profit to allow for such reduction in value

2. accounting a modified amount permitted for purposes of tax deduction

3. the act or an instance of depreciating or belittling; disparagement

4. a decrease in the exchange value of currency against gold or other currencies brought about by excess supply of that currency under conditions of fluctuating exchange rates Compare devaluation

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depreciation Cultural  

1. A decline over time in the value of a tangible asset, such as a house or car.

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Other Word Forms

• nondepreciation noun
• predepreciation noun
• redepreciation noun
• underdepreciation noun

Etymology

Origin of depreciation

An Americanism dating back to 1730–40; depreciate + -ion

Example Sentences

Earnings before interest, taxes, depreciation, and amortization, or Ebitda, profit margins could be as high as 50%.

From Barron's • Apr. 3, 2026

Recent changes in federal tax laws regarding property depreciation benefits have added incentive, he said, and with office leasing improving around the country, lenders are looking more favorably on backing office purchases.

From Los Angeles Times • Apr. 3, 2026

Also, BOJ Gov. Ueda has emphasized the “profound” impact of JPY’s excessive depreciation on pass-through effect to prices, Wee says.

From The Wall Street Journal • Mar. 31, 2026

In February, it reported an adjusted loss before interest, tax, depreciation and amortization of $101 million for last year, and it forecast an adjusted loss of as much as $27 million for the current quarter.

From MarketWatch • Mar. 31, 2026

Prices kept going up and up, and depreciation of the paper money took a lot of the profit out of it.

From "My Brother Sam is Dead" by James Lincoln Collier and Christopher Collier

Related Words

• deflation
• reduction
• slump