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 bill would prevent companies with more than 50 single-family homes for rent from taking deductions for housing value depreciation and mortgage interest payments. —Emily Wilkins, CNBC, 24 Feb. 2026

In work terms, humility isn’t self depreciation. —Adam Dietz, Big Think, 24 Feb. 2026

Growth in earnings before interest, taxes, depreciation and amortization (Ebitda) among companies that have issued private debt is in decline, largely because the number of high-growth companies is in decline, lowering the average level of profitability across the index. —Jim Edwards, Fortune, 22 Feb. 2026

This team cleared $65 million a year before interest, taxes, depreciation, and amortization — third-best in baseball, per CNBC. —Dieter Kurtenbach, Mercury News, 18 Feb. 2026

The standard is enterprise value-to-EBITDA — the value of all a company’s stock and debt divided by its annual earnings before interest, taxes, depreciation and amortization. —Evan Clark, Footwear News, 10 Feb. 2026

America’s competitiveness should come from productivity and logistics, not depreciation. —Phillip Molnar, San Diego Union-Tribune, 6 Feb. 2026

The trade-off is a potentially larger depreciation and more difficulty finding parts and knowledgeable mechanics for those holding long-term. —Aldo Svaldi, Denver Post, 1 Feb. 2026

Record-high inflation and a stunning depreciation of the local currency mean even Iranians with stable jobs can barely afford essentials. —Seyed Rahim Bathaei, CBS News, 30 Jan. 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