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Time Value Money Calculator for Calculating Opportunity Cost of Depreciables

Calculator Preferences
Depreciable Assets TVM Calculator Sign
Depreciable Assets TVM Calculator

This calculator will calculate the time and financial opportunity costs of buying and owning goods that lose their value with time and use (depreciating assets), and that may come with one or many ongoing ownership costs. The Learn tab includes:

  • What is a depreciable asset?
  • The opportunity cost tsunami.
  • How to earn hundreds of dollars per hour.
Learn More

Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Opportunity Cost Variables
Annual ROI:Annual ROI:Expected annual return on investments:Expected annual return on investments:

Expected annual return on investments:

Enter the annual interest rate you expect to earn on your investments. Please enter as a percentage, but without the percent sign (for .06 or 6%, enter 6).

Hourly wage:Hourly wage:Hourly wage:Hourly wage:
Annual salary:
Hours/workday:
Workdays/week:
Hourly wage:

Hourly wage:

Enter your current hourly wage (the money value of your time), but without the dollar sign or any commas. If you earn an annual salary you can expand the description to display a calculator that will help you to estimate your hourly wage.

# of years:Number of years:Years to calculate opportunity costs:Number of years to calculate opportunity costs:

Number of years to calculate opportunity costs:

Enter the number of years to calculate time value of money for. This could either be an arbitrary number of years or it could be the number of years till a significant date is reached (child reaches college age, your retirement age, etc.).

Asset Purchase Variables
Name:Depreciable name:Name of depreciable asset:Name of depreciable asset:

Name of depreciable asset:

Enter the name of the depreciable asset you are calculating opportunity costs for. For our purposes, a depreciable asset is considered to be an asset that maintains a portion of its value for more than 1 year, and may include ongoing costs of ownership (energy, insurance, storage, maintenance, repairs, depreciation, etc.).

Own years:# of own years:Number of years you plan to own asset:Number of years you plan to own asset:

Number of years you plan to own asset:

Enter the number of years you plan to own the asset. This could also be the number of years you expect the asset to last (useful life). Note that even though a depreciable asset may have a long life span, the technology it is based on may become obsolete much sooner than you expect.

Base price:Base price:Base price:Base price:

Base price:

Enter the base price of the depreciable asset, but without the dollar sign and any commas. This should include the cost of all added options and features, but not the cost of financing -- which will be addressed in the Finance Variables section.

End value:Salvage value:Value at end of ownership term:Salvage value at end of ownership term:

Salvage value at end of ownership term:

Enter the amount, if any, you expect to be able to sell the asset for after owning it for the number of years you entered. Enter as a dollar amount but without the dollar sign and any commas.

This reduction in value during the ownership period is referred to as depreciation. The calculator will divide the total depreciation by the years of ownership in order to arrive at the annual cost of depreciation. In reality, most assets depreciate at a much faster rate in the early years of ownership as compared to the later years of ownership. This is why buying a new version of depreciable asset every one or two years will cost you a fortune in depreciation costs when compared to buying a new version every 10 years.

Sales tax:Sales tax:Sales tax:Sales tax:

Sales tax:

If sales tax will be charged on the base price of the asset, enter the percentage here, but without the percent sign (for .07 or 7%, enter 7). The calculator will calculate the sales tax dollar amount by multiplying the entered sales tax percentage by the base price entered earlier.

Misc fees:Miscellaneous fees:Warranty, shipping, appraisal, title fees:Extended warranty, shipping, appraisal, title fees:

Extended warranty, shipping, appraisal, title fees:

Enter the total of any miscellaneous fees and charges that would be considered useless if purchased without the asset. Enter without the dollar sign and any commas. Note that this total will not be included in the sales tax calculation.

Total costs:Purchase costs:Total purchase costs:Total purchase costs:

Total purchase costs:

This is the calculated total of the base price, the sales tax, and the miscellaneous purchase costs.

Cash pmt:Cash payment:Cash payment:Cash payment:

Cash payment:

If you are paying cash for this asset, enter the same amount as is calculated in the Total purchase costs field. Entering an amount less than that will tell the time value money calculator to finance the difference. In either case, enter as a dollar amount but without the dollar sign and any commas.

Financing Cost Variables
Finance:Finance amt:Amount to finance:Amount to finance:

Amount to finance:

This the calculated difference between the total purchase costs and the cash payment amount. If the two are equal (you are paying cash for the asset), you can skip this section and move on to the next.

Loan rate:Finance rate:Financing rate:Financing rate:

Financing rate:

Enter the annual percentage interest rate you will be paying on the financed portion of the purchase. Enter as a percentage but without the percent sign.

Loan months:Repayment months:Repayment term in number of months:Repayment term in number of months:

Repayment term in number of months:

Enter the number monthly payments you will make before the financed portion of the purchase is paid off.

Loan costs:Loan costs:Loan costs:Loan costs:

Loan costs:

Enter the total of any loan costs that serve to increase the amount to finance, but that would be worthless without the asset (origination fees, etc.). Note that these will not be rolled into the loan amount for calculating payments, but will be included in the average annual loan costs. Enter as a dollar amount but without the dollar sign and any commas.

Monthly pmt:Monthly payment:Monthly payment:Monthly payment:

Monthly payment:

This is the calculated monthly payment derived from the amount to finance, the finance rate, and the number of monthly payments. The calculator will use this result to calculate the interest cost for the ownership period, and to determine if you will have the balance paid off by the time you are ready to sell or discard the asset.

End bal owed:End balance owed:Owed at end of ownership period:Balance owed at end of ownership period:

Balance owed at end of ownership period:

This is the calculated balance owed as of the end of ownership period, if any portion of the purchase was financed.

Net proceeds:Net sale proceeds:Net proceeds from sale:Net proceeds from sale at end of ownership period:

Net proceeds from sale at end of ownership period:

This is the difference between the entered salvage value and the calculated remaining balance of the loan at the end of the ownership term. If the result is negative it means you will owe that much more than the asset is worth at the time you are ready to sell. This is otherwise known as being upside down in the loan. If the number is positive it means that this is how much will be left after paying off the balance owed from the proceeds of selling the asset.

Interest:Interest cost:Interest cost during ownership period:Interest cost during ownership period:

Interest cost during ownership period:

This is the calculated total of the interest paid during the number of years you plan to own the asset.

Annualized Ownership Costs
Energy:
Energy Cost Calculator
Amount:
Per:
Annual average:

Energy cost during ownership period:

If this asset will require energy to operate (gasoline, fuel oil, electricity, propane, etc), tap the button on this row to open a form for entering the annual energy cost.

Insurance:
Insurance Cost Calculator
Amount:
Per:
Annual average:

Insurance cost during ownership period:

If you expect to insure the asset against loss or being sued, tap the button in this row to open a form for entering the annual insurance cost. If the asset will be included in an existing umbrella-type policy, enter the amount of the premium you believe represents the portion attributable to the asset.

Storage:
Storage Cost Calculator
Amount:
Per:
Annual average:

Storage cost during ownership period:

If you are or will be renting a storage facility to house this asset, tap the button in this row to open a form for entering the portion of the rental fee that is attributable to the asset. Technically, all physical assets have a storage expense. After all, the more stuff you buy, the bigger the residence, garage, or storage shed you will need, some of which also will need to be heated, cooled, and/or maintained. Therefore, if this asset will take up space, I encourage you to enter an estimate, no matter how small.

Maint/repair:Maint/repairs:Maintenance & repairs:Maintenance & repairs:
Maintenance & Repairs Cost Calculator
Amount:
Per:
Annual average:

Maintenance & repair cost during ownership period:

Tap the button in this row to open a form for entering the amount you expect to spend on maintaining and/or repairing the asset. This is the periodic amount you should be setting aside in an asset repair and maintenance account -- along with all of the periodic amounts to cover all of your existing depreciable assets. Everything that can break most likely will. But as long as you prepare for these expected events, the thing that breaks will not be your budget.

Lic/permits:License/permits:License and permits:License and permits:
License and Permit Cost Calculator
Amount:
Per:
Annual average:

License and permit cost during ownership period:

If this asset requires a periodic purchase of a license or permit, tap the button in this row to open a form for entering the annual license and permit costs.

Prop tax:Property tax:Property tax:Property tax:
Property Tax Cost Calculator
Amount:
Per:
Annual average:

Property tax cost during ownership period:

If this depreciable asset is a building, tap the button in this row to open a form for entering the property tax amount attributable to the asset. While most people do not consider buildings to be depreciable assets, unless they are made of an indestructible alloy, father time will see to it that they will eventually need to be replaced. Sure, your property as a whole may increase in value (or may drop in value), but all buildings come with ongoing costs of ownership which serve to nullify any appreciation in property values that may occur (plus, property value increases also result in higher taxes).

Sales tax:Sales tax & misc:Sales tax and misc purchase costs:Sales tax and miscellaneous purchase costs:

Sales tax and miscellaneous purchase costs:

This is the average annual cost of sales tax and miscellaneous purchase costs over the course of the ownership period.

Loan costs:Int & loan costs:Interest charges and loan costs:Interest charges and loan costs:

Interest charges and loan costs:

This is the average annual cost of interest charges and loan costs over the course of the ownership period.

Deprec:Depreciation:Depreciation:Depreciation:

Depreciation:

This is the average annual cost of depreciation over the course of the ownership period.

Total costs:Total annual costs:Total average annual ownership costs:Total average annual ownership costs:

Total average annual ownership costs:

This is the total average annual cost of all costs associated to owning the asset.

Opportunity Costs
Single costs:Single term costs:Total ownership costs for single term:Total ownership costs for single ownership term:

Total ownership costs for single ownership term:

Based on your entries, this is how much you will spend to own this depreciable asset for the number of years you plan to own it.

Years cost:All years costs:Total ownership costs for entered years:Total ownership costs for opportunity cost years:

Total ownership costs for opportunity cost years:

Based on your entries, this is how much you will spend to own this depreciable asset for the number of years you plan to repeat the buying and selling of this type of asset.

Lost interest:Foregone interest:Lost interest earnings:Lost interest earnings:

Lost interest earnings:

If you spend the annual average cost to own the asset instead of investing that amount, this is how much interest earnings you will lose over the course of the number of years you expect to repeat this buying scenario.

Money OC:Fin opp costs:Financial opportunity costs:Financial opportunity costs:

Financial opportunity costs:

Based on your entries, this is the minimum financial opportunity cost of choosing to spend money to own this depreciable asset instead of choosing to invest the money. Please note that if you have high interest debt that could be reduced or paid off with money saved by eliminating this depreciable asset from your buying habits, then the financial opportunity cost of repeating this buying scenario is actually much greater than the minimum displayed.

Time OC:Time opp costs:Time opportunity costs:Time opportunity costs:

Time opportunity cost:

Based on your entries, this is the total number of hours you could take off from work if you invested the cost of buying and owning the depreciable -- after the entered number of opportunity cost years have passed. So if there is something you would rather do with the time you spend at work, then the financial opportunity costs would futher lead to personal opportunity costs (good times lost).

If you would like to save the current entries to the secure database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Feedback AppreciatedFeedback Greatly AppreciatedYour Feedback Would Be Greatly AppreciatedYour Feedback Is Greatly Appreciated
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Tip

About

About the Depreciable Assets TVM Calculator

When it comes to your financial future, this opportunity cost calculator is probably the most important online calculator you will ever run across.

In fact, ignoring the concepts brought to light in this calculator could end up costing you a vast fortune in potential future wealth!

Specifically, this calculator will calculate the time and financial opportunity costs of buying and owning goods for which the value declines with time and use, and which often come with one or many ongoing costs of ownership. These goods are often referred to as depreciable or depreciating assets.

The calculator will also translate the monetary opportunity costs into the opportunity cost of time, as in, how many hours could you take take off from work at some point in future if you invested the cost of buying and owning instead of repeatedly buying and owning new versions of the same asset.

If you are interested in calculating opportunity costs for purchases for which the value lasts less than one year, and that do not come with ongoing ownership costs, please visit the TVM for Consumables Calculator -- which also includes the answer to "What is Time Value of Money?" as well as an eye-opening explanation of the little-thought-of concept I refer to as, The Money Value of Your Time.

Or, if you are interested in using a calculator specific to one of the 4 primary time value of money concepts, please choose from the following calculating options:

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Learn how I went from being trapped in a work I hated to being free to work at what I love.

Instructions

How to use the Depreciable Assets TVM Calculator

Step #1:

Enter the opportunity cost variables, which include: the annual return on your investments your hourly wage, and the number of years you would like to calculate opportunity costs for.

Step #2:

Enter the asset purchase variables, which include: the asset name, the number of years you plan to own the asset, the base price, the salvage value, the sales tax percentage (if applicable), the miscellaneous fees, and the cash down-payment if financing.

Step #3:

If you are financing any portion of the purchase, enter the financing cost variables, which include: the loan rate, the number of months to finance, and any loan fees that will apply.

Step #4:

Enter any annualized ownership costs that will come with the purchase of the asset, which might include costs such as energy, insurance, storage, maintenance, repairs, licenses, permits, and property tax costs.

Step #5:

Click the "Calculate Opportunity Costs" button and scroll down to view the results and the summary.

Saving Entries:

If your web browser supports Local Storage, you can save your entries to your web browser so won't have to start over on your next visit. Please note that your saved entries can only be retrieved from the same device and web browser you were using when you stored them. If you would like to access your saved entries from any device I invite you to subscribe to the Ad-Free Member Version.

To save your entries to your web browser, click or tap the Data tab in the Help and Tools section (mobile: top right of the main screen), select "New Data Record" from the drop-down menu, enter a name for the data record, and then tap or click the Save button.

To load previously saved entries, click or tap the Data tab and select the saved data record from the drop-down menu. You can then save any changes to your entries by simply clicking the Save button while the data record is selected.

To clear a named set of saved entries, click or tap the Data tab, select the saved data record from the drop-down menu, and then tap or click the Clear button.

Numbers and Decimals:

Only numeric characters (0-9 and decimal points) may be entered in numeric fields. Non-numeric characters (dollar signs, percent signs, commas, etc.) may cause calculation errors. If the field includes a grid icon, tapping the icon will open a popup keypad which will include only the characters allowed in the field. If your device keypad does not include a decimal point, use this popup keypad to enter decimal numbers where applicable.

Popup Tool Tips:

Tap the info (i) icons for a further explanation of each entry field (you can click [X] or outside of the pop-up tool tips to close them). A summary of these explanations, along with any additional term explanations, can also be found under the Terms tab.

Disclaimer:

Since I can't test for every possible combination of numbers, please be sure to double-check the results of this calculator yourself before considering them to be valid. If you do discover an issue with the calculated results, please report the issue using the feedback form located below the calculator.

Scrolling & Shrinking:

In order to scroll the calculator vertically you will need to swipe just outside of the calculator's dark-blue border, or use the window's far right-hand scroll bar, whichever is applicable to your device.

If the top section of the calculator becomes to tall for your viewport, tapping in the "Enter a problem..." field should reset the top section to its original height.

Disclaimer:

The Algebra Calculator is the only calculator on the site that I did not create myself. And since I did not create it, I don't have access to the code for fixing any issues you may be experiencing. So if you are having issues with the calculator, please visit the support page at Mathway.com for assistance.

Glossary

Fields, Terms, and Definitions.

Reset button:

Clicking the "Reset" button will restore the calculator to its default settings.

Pocket Calculator

Calculate any amounts needed to enter into calculator.

 

Data Management

Save and retrieve entries and notes (requires HTML5 compliant web browser).

Calculator Data

Calculator Data:

If you are using the latest version of your web browser software, this feature will allow you to save your calculator entries to your web browser's local storage in between visits. This means the calculator entries can only be recalled with the same device and web browser you were using when you saved them. If you'd like to save data between devices you will need to subscribe to the Ad-Free Member Version.

Save: To save a new set of calculator entries, select "New Data Record" from the dropdown list, enter a nickname for the data record, then click the "Save" button.

Load: To load a previously saved set of calculator entries, simply select the name of the data record from the dropdown list.

Save Changes: To save changes to a set of previously saved calculator entries, be sure the name of the data record is selected, and then click the "Save" button.

Clear: To clear a saved set of entries, be sure the name of the data record is selected, and then click the "Clear" button.

Backup Data
My Notes:
Subscribe to the Cloud level of the Ad-Free Member Version to save your entries and notes to a secure online database, allowing you to access your saved entries from any device or web browser.

Sorry! The Save functions are bonus features reserved for those who allow ads to display on the page.

If you would like to use the Save features, please disable ad blocking for this website and refresh the page. Or you can choose to subscribe to the Ad-Free Member Version of the site.

Help and Tools

Help and Tools:

This section, which you can Unstick or Hide in the Calculator Preferences (just above the top of the calculator), contains the following tabs (content too long to fit within bordered frame can be scrolled up and down):

About: Click this tab for an introduction to the calculator.

Instructions: Click this tab for step-by-step instructions for using the calculator.

Terms: Click this tab for a list of the descriptions that are located within each popup help button (info icons).

PCalc: Click this tab for a handy "pocket" calculator you can use when you need to calculate an entry needed for the calculator.

Data: Click this tab to save a set of entries or a note in between visits. Entries and notes will be stored to your web browser's local storage (if supported by your browser of choice), meaning they can only be recalled with the same device and web browser you were using when you saved them. If you'd like to save entries and notes between devices you can do so by subscribing to the Ad-Free Member Version.

 

Favorites

Add or remove this page to/from my favorites.

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.