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 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

Analysts pointed to the upside potential for free cash flow and EBITDA (earnings before interest, taxes, depreciation, and amortization) margins in the company's electrification division. —Natasha Abellard, CNBC, 30 Jan. 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

But media earnings before interest, taxes, depreciation and amortization tumbled 141% to a loss of $122 million to account for the NBA contract. —Meg James, Los Angeles Times, 29 Jan. 2026

The impact of the yen’s depreciation on price trends has been a concern to some BOJ policymakers. —Mia Glass, Bloomberg, 28 Jan. 2026

When asked what fueled this depreciation, analysts cited a range of variables. —Charles Lloyd Bovaird Ii, Forbes.com, 27 Jan. 2026

Doing so helps avoid the steepest amount of depreciation, while still being under warranty. —Jill Schlesinger, Mercury News, 26 Jan. 2026

Their impact was coupled with the depreciation of the dollar. —Martino Carrera, Footwear News, 26 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