WordValedepreciation
the decline in an asset's value over time
In more detail
1. (noun) a decrease in the value or price of something over time
2. (noun) the reduction in value of an asset that a business accounts for in its financial records
Examples
- 1. The depreciation of the house over ten years meant it was worth less when they sold it.
- 2. The company claimed depreciation on their equipment as a tax deduction.
How to use depreciation
Depreciation typically refers to a gradual loss of value in physical assets (machinery, vehicles, real estate) or currency over time, whether due to wear, age, technological obsolescence, or market forces. In accounting, it is a non-cash expense method used to allocate an asset's cost over its useful life. The term is more technical and formal than simple 'decline' or 'decrease', and is standard in finance, accounting, and economics contexts.
Common phrases
- depreciation of currency
- depreciation allowance
- accumulated depreciation
- book depreciation
- depreciation expense
- depreciation rate
Synonyms
decline · decrease · devaluation · diminution · reduction
Opposites
appreciation · increase · enhancement
Word family
depreciate (verb) · depreciating (adjective) · depreciated (adjective)
A common mistake
Learners sometimes confuse depreciation with amortization (which applies to intangible assets) or use it incorrectly as a synonym for general price drops without specifying whether they mean physical deterioration, accounting deduction, or currency devaluation.
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