Equipment Depreciation Calculator
Understand how skid steer value changes over time
Equipment loses value every year and every hour of operation. Understanding depreciation helps you time purchases, plan trade-ins, and calculate true cost of ownership for your business.
Average Depreciation Rates
| Age | Value Remaining | Annual Loss |
|---|---|---|
| Year 1 | 75-80% | -20-25% |
| Year 2 | 65-72% | -8-10% |
| Year 3 | 55-65% | -7-10% |
| Year 5 | 42-52% | -5-7% |
| Year 10 | 22-32% | -3-5% |
Based on analysis of 17,026+ auction sales. Actual depreciation varies by brand, model, and condition.
Depreciation by Brand
5-year value retention varies significantly by brand:
Hours vs Age
Age Impact
Each year of age reduces value by approximately 5-10%, with the steepest decline in year 1 (20-25% loss when it becomes "used").
Hours Impact
Each additional 500 operating hours reduces value by approximately 3-5%. Low-hour machines command significant premiums.
Factors That Affect Depreciation
Slower Depreciation
- • Premium brands (Kubota, Bobcat, CAT)
- • Well-documented service history
- • Low hours for age
- • Desirable features (high-flow, cab)
- • Single owner
Faster Depreciation
- • Budget brands
- • High hours for age
- • Missing service records
- • Visible wear or damage
- • Rental fleet origin (sometimes)
Example Depreciation Calculation
Bobcat S650 (MSRP: $65,000)
| Year | Hours | Est. Value | % of MSRP |
|---|---|---|---|
| New | 0 | $65,000 | 100% |
| 1 year | 400 | $52,000 | 80% |
| 3 years | 1,200 | $42,000 | 65% |
| 5 years | 2,000 | $35,000 | 54% |
| 7 years | 2,800 | $28,000 | 43% |
Calculate Your Equipment Value
Get a current market valuation based on real auction data.
Use Depreciation Calculator