depreciation

depreciation — noun

1. The gradual loss of value that something undergoes as it gets older, is used, or

1.nounB2
Definition

The gradual loss of value that something undergoes as it gets older, is used, or as market conditions change.

Example

Soraya watched her new car suffer rapid depreciation the moment she drove it off the lot.

collocation: suffer + depreciation (of a newly purchased item)

Currency depreciation made imported goods far more expensive for consumers in the region.

depreciation + of + [currency] for value decline

Common collocations
  • suffer depreciation
  • depreciation in value
  • rapid depreciation
  • currency depreciation
Synonyms
  • decline

    More general — can refer to any decrease, not just in value (e.g., decline in quality).

  • decrease

    Neutral and broad; less specific to continuous, time-based loss.

  • devaluation

    Specifically a deliberate, official reduction in currency value by a government; narrower and more sudden.

Antonyms
  • appreciation

    An increase in value over time, the opposite of depreciation.

Grammar Patterns

depreciation + in + noun phrase

depreciation + of + noun phrase

Usage Note

Used for any general decrease in worth over time — cars, electronics, property, or currency. Not used for temporary price reductions, which are called discounts or markdowns. Often paired with 'in' (depreciation in property values) or 'of' (depreciation of the currency).

Common Mistakes

The store offered a depreciation on winter coats.
The store offered a discount on winter coats.
Depreciation is a gradual loss of value over time, not a temporary price cut set by a seller.
There was a depreciation in the stock market yesterday.
There was a decline in the stock market yesterday.
Depreciation refers to a gradual, long-term process, not a single day's drop.

2. A method used in accounting and tax reporting where the cost of a long-term phys

2.nounB2
Definition

A method used in accounting and tax reporting where the cost of a long-term physical asset (such as machinery, vehicles, or buildings) is gradually reduced over its expected useful life, allowing a business to spread the expense across multiple years.

Example

Omar's company calculates the annual depreciation of its delivery trucks using a standard seven-year schedule.

annual depreciation + fixed time-period schedule

Accountants must decide whether to use straight-line or accelerated depreciation when preparing the annual report.

straight-line vs. accelerated depreciation methods

Common collocations
  • straight-line depreciation
  • accelerated depreciation
  • accumulated depreciation
  • depreciation expense
  • annual depreciation
  • claim depreciation
  • depreciation schedule
Synonyms
  • amortization

    Similar concept but applies to intangible assets (patents, trademarks) or loan repayment schedules, not physical items.

  • write-down

    A one-time reduction in an asset's book value, not a gradual annual process.

Antonyms
  • appreciation

    An increase in an asset's value over time; not typically used in accounting for fixed assets.

Grammar Patterns

depreciation + of + asset

claim + depreciation + on + asset

depreciation + expense

Usage Note

This sense is restricted to formal accounting and tax contexts. Only long-term tangible assets used in a business (machinery, vehicles, buildings, furniture) qualify; inventory, short-term supplies, and personal belongings do not. Different methods (straight-line, declining balance, sum-of-the-years'-digits) produce different annual amounts.

Common Mistakes

I can claim depreciation on the snacks I bought for the office party.
I can claim depreciation on the office furniture I bought for my business.
Only long-term assets qualify, not short-term consumables.
My phone has depreciation of 20% each year because I use it personally.
My phone loses value, but depreciation as a tax term only applies to business assets.
Personal use items are not depreciated for accounting or tax purposes.

Word family

  • depreciate
    verbB2
  • depreciable
    adjectiveC1
  • depreciating
    adjectiveB2
  • depreciatory
    adjectiveC1

Synonym discussion

Sense: noun/1

"Depreciation" and "deprecation" are often confused but have different roots and meanings. Depreciation refers to a gradual loss of value; deprecation means expressing disapproval (as in "self-deprecating humor") — the two only overlap in the rare sense of "belittling someone." "Amortization" also spreads a cost over time, but it applies to intangible assets (patents, trademarks, loans) rather than physical items like vehicles or machinery. "Devaluation" is a deliberate, official reduction in a currency's value by a government or central bank — it is sudden and policy-driven, unlike the gradual market-driven process of depreciation. For example: "The company recorded £50,000 in annual depreciation on its factory equipment," whereas "The central bank announced a 10% devaluation of the peso."

deprecationamortization ↗devaluation

Common collocations

Nouns

Adverbs

Phrases

  • straight-line depreciation
  • accelerated depreciation
  • accumulated depreciation
  • depreciation write-off

Prepositions

Etymology

LatinFrenchEnglish

From Latin 'depretiatus' (past participle of 'depretiare'), formed from 'de-' (down, away) + 'pretium' (price). The word passed through French before entering English in the late 18th century, originally referring to any loss of value. The formal accounting sense emerged in the 19th century alongside industrial capitalism, when businesses needed systematic methods to account for the wearing out of machinery and equipment over time.