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

However, while return on investment for artificial intelligence remains uncertain, rising depreciation expenses from new data center buildouts present an additional drag on corporate profitability. — CNBC, 4 Nov. 2026

The initial spending surge is climbing but losing steam as AI capex growth as a share of GDP slows, the boost from last year’s tax depreciation incentives fades, and the stock-market wealth effect cools. — Jeffrey Sonnenfeld, Fortune, 28 Oct. 2026

As part of its offer, ATO SpA has also proposed a potential 3 million euro earn-out if cumulative earnings before interest, taxes, depreciation and amortization for the 2026 to 2029 period exceed 23 million euros. — Martino Carrera, Footwear News, 22 Oct. 2026

The second differentiation is the fact that these telcos have 60 percent earnings before interest, taxes, depreciation, and amortization (EBITDA) margins. — Nilay Patel, The Verge, 17 Oct. 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