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

SoFi also raised expectations for adjusted earnings before interest, taxes, depreciation and amortization. — Sarah Min, CNBC, 27 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

This case involved a restaurant owner accused of underreporting more than US$2 million in business receipts and claiming unsupported depreciation deductions on rental properties. — Kaitlin Newkirk, The Conversation, 14 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