depreciation

noun

di-ˌprē-shē-ˈā-shən 

1

: the act of making a person or thing seem less valuable : the act of depreciating

depreciation of the role of art in school

2

: a decrease in the value of something (as due to deterioration or obsolescence)

specifically : a decrease in the value of property (such as machinery) for the purpose of taxation that is carried as a yearly charge amortizing the original cost over the useful life of the property

Examples of depreciation in a Sentence

Recent Examples on the Web

The Red Devils also had the highest earnings before interest, taxes, depreciation and amortization, or EBITDA, of any soccer team in CNBC's rankings, at $234 million. —Michael Ozanian, CNBC, 29 May 2026

Profit growth driven by depreciation extension differs from profit growth driven by revenue expansion. —Brian Anderson, Forbes.com, 27 May 2026

In 2025 the company logged sales of 281 million euros, flat versus a year earlier, but saw earnings before interests, taxes, depreciation and amortization grow to 40 million euros, up from 30 million euros a year earlier. —Martino Carrera, Footwear News, 27 May 2026

Yet Bernanke’s affordability score was best, as income growth contrasted with an average 1.3% annual home depreciation. —Jonathan Lansner, Oc Register, 15 May 2026

Adjusted earnings before interest, taxes, depreciation and amortization will be in a range of $160 million to $180 million, the midpoint of which was in line with the average estimate. —Bloomberg, Mercury News, 8 May 2026

Luscombe noted that taxpayers will be taking into account the adjusted basis, which typically involves the purchase price plus the cost of improvements to the property minus any depreciation claimed with respect to the property. —Susan Tompor, Freep.com, 7 May 2026

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $1.1 billion, helped in part by growth in its streaming services unit. —Meg James, Los Angeles Times, 4 May 2026

Word History

First Known Use

1744, in the meaning defined at sense 2

Rhymes for depreciation

• abdication
• aberration
• abjuration
• abnegation
• abrogation
• acceptation
• acclamation
• acclimation
• accusation
• activation
• actuation
• acylation

Kids Definition

depreciation

noun

de·​pre·​ci·​a·​tion

di-ˌprē-shē-ˈā-shən

1

: a decline in the purchasing power or exchange value of money

2

: the act of making a person or a thing seem little or unimportant : disparagement

3

: a decline (as from age or wear and tear) in the value of something

Legal Definition

depreciation

noun

de·​pre·​ci·​a·​tion di-ˌprē-shē-ˈā-shən 

1

: any decrease in the value of property (as machinery) for the purpose of taxation that cannot be offset by current repairs and is carried on company books as a yearly charge amortizing the original cost over the useful life of the property

— accelerated depreciation

: the depreciation of property that was put into use prior to 1980 which is allowed at a faster rate than normal under the depreciation rules in force before the adoption of the Accelerated Cost Recovery System

— straight-line depreciation

: depreciation of an asset by a fixed percentage of its original cost based on its estimated life

2

: a loss in the value of property due to physical deterioration and wear or to obsolescence and lack of adaptability