depreciation
Americannoun
-
decrease in value due to wear and tear, decay, decline in price, etc.
-
such a decrease as allowed in computing the value of property for tax purposes.
-
a decrease in the purchasing or exchange value of money.
-
a lowering in estimation.
noun
-
accounting
-
the reduction in value of a fixed asset due to use, obsolescence, etc
-
the amount deducted from gross profit to allow for such reduction in value
-
-
accounting a modified amount permitted for purposes of tax deduction
-
the act or an instance of depreciating or belittling; disparagement
-
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
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
Looking to grow your vocabulary? Check out this interactive, curated word list from our team of English language specialists at Vocabulary.com – one of over 17,000 lists we've built to help learners worldwide!
Personal Finance and Financial Literacy - High School
Interested in learning more words like this one? Our team at Vocabulary.com has got you covered! You can review flashcards, quiz yourself, practice spelling, and more – and it's all completely free to use!
Economics
Want to remember this word for good? Start your learning journey today with our library of interactive, themed word lists built by the experts at Vocabulary.com – we'll help you make the most of your study time!
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.
Depreciation rates are out of line with reality.
From Barron's • Jan. 9, 2026
Depreciation per unit per month fell 49% to $273 and the company said it now has “improved fleet economics.”
From The Wall Street Journal • Nov. 4, 2025
“I want to say this clearly: Depreciation shocks only produce poverty and an enormous transfer of resources,” he said.
From Seattle Times • Aug. 3, 2022
Depreciation Once a new car is driven away from the dealer, it begins to lose value.
From Textbooks • Apr. 22, 2020
Depreciation of him, and of his rank as a man of letters, was a necessity of their case.
From James Fenimore Cooper American Men of Letters by Lounsbury, Thomas Raynesford
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.
