depreciation
Americannoun
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decrease in value due to wear and tear, decay, decline in price, etc.
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such a decrease as allowed in computing the value of property for tax purposes.
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a decrease in the purchasing or exchange value of money.
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a lowering in estimation.
noun
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accounting
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the reduction in value of a fixed asset due to use, obsolescence, etc
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the amount deducted from gross profit to allow for such reduction in value
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accounting a modified amount permitted for purposes of tax deduction
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the act or an instance of depreciating or belittling; disparagement
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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
Other Word Forms
Derived Forms
Inflected Forms
Nouns
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.
Vocabulary lists containing depreciation
Vocabulary from the Second Presidential Debate: October 9, 2016
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Personal Finance and Financial Literacy - High School
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Economics
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Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
After its stock has risen 46% from its initial public offering price, Innio’s enterprise value is roughly 34 times forward earnings before interest, taxes, depreciation and amortization.
From The Wall Street Journal • Jul. 1, 2026
A big factor: the yen’s significant depreciation against the U.S. dollar, UBS said.
From Barron's • Jun. 30, 2026
Martin Marietta is paying 15 times adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda.
From Barron's • Jun. 29, 2026
The Michigan-based startup plans to record positive free cash flow and earnings before taxes, depreciation and amortization by 2027, he said.
From MarketWatch • Jun. 24, 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
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
