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

Etymology

Origin of depreciation

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

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

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 team listed yen depreciation and the potential for any investment cycle to be disrupted by the unexpected as potential challenges.

From MarketWatch ● Sep. 24, 2026

Starboard wants Knife River to commit to narrowing the gap between its earnings before interest, tax, depreciation and amortization margins and those of its peers in the next few years, the people said.

From The Wall Street Journal ● Sep. 23, 2026

The cancellation of flights represents a new woe for Iran’s 90 million people, already beset by high inflation and the rapid depreciation of the country’s rial currency.

From The Wall Street Journal ● Sep. 22, 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

The war must be carried on at an expense proportioned to this value, which must inevitably call for immense emissions, and, of course, still further depreciations must ensue.

From The Diplomatic Correspondence of the American Revolution, Vol. I by Jared Sparks

Related Words

• deflation
• reduction
• slump