depreciation

American  

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

noun

• depreciations
  plural

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

Derived Forms

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

Inflected Forms

Nouns

• depreciations
  plural

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Etymology

Origin of depreciation

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

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Explanation

Depreciation is when the value of a currency is lowered. The depreciation of the U.S. dollar when compared to the Euro, for example, means that you'll pay more for things in Europe at the current exchange rate. Depreciation is from the Latin word depretiare, which means to lower in price, with the roots de, meaning "down," and pretium, meaning "price." If something goes down in value, then the amount of the decrease is called depreciation. If, for example, you buy a car for $10,000, but a year later it is only worth $8,000 due to wear and tear, then the depreciation on the car is $2,000.

Example Sentences

See Examples For:

depreciation depreciations

The preliminary third-quarter figures were published late Thursday and beat even the highest earnings before interest, taxes, depreciation and amortization expectations, Jefferies analyst Constantin Hesse wrote in a note.

From The Wall Street Journal ● Oct. 16, 2026

That’s not your total return because it doesn’t include appreciation — or, heaven forbid, depreciation — of your home.

From MarketWatch ● Sep. 29, 2026

The firm typically invests in midmarket North American companies with up to $1 billion in revenue and up to $75 million of earnings before interest, tax, depreciation and amortization, according to its website.

From The Wall Street Journal ● Sep. 29, 2026

In 2025, our earnings before interest, taxes, depreciation and amortization was $6.4 billion.

From The Wall Street Journal ● Sep. 25, 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

The gold miner said earnings before interest, taxes, depreciations and amortization more than doubled on year to $2.29 billion, aided by higher production volumes and elevated gold prices.

From The Wall Street Journal ● May 8, 2026

President Masoud Pezeshkian promised dialogue and acknowledged "legitimate demands" in in a country where inflation soars near 50%, and currency depreciations play havoc with people's hardscrabble lives.

From BBC ● Jan. 12, 2026

Next year also could see corporates taking advantage of last year’s tax law changes that allow 100% bonus depreciations and immediate expensing of R&D costs.

From MarketWatch ● Dec. 5, 2025

"However, with underlying fundamentals relatively strong, central banks maintaining adequate FX reserves to stabilize their currencies, and central banks not pivoting toward easing just yet, depreciations should be modest."

From Reuters ● Sep. 7, 2023

His course now in the campaign silenced men like Hale and Seward who had nagged him for years with their depreciations and suspicions.

From Children of the Market Place by Edgar Lee Masters

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Related Words

• deflation
• reduction
• slump

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