Average Life of an Asset

The Average Life of an Asset calculator computes the average age in years based on the investment in property, plant and equipment (P) and the Depreciation Expense (D).

INSTRUCTIONS: Choose the preferred units and enter the following:

• (P) This is the investment in Property, Pant and Equipment.
• (D) This is the Depreciation expense.

Average Life of Asset (AL): The calculator returns the average life in years.  However, this can be automatically converted to other time units via the pull-down menu. 

Related Calculators

• Compute the Average Age of an Asset
• Compute the Average Life of an Asset

The Math / Science

Long-term assets constitute the major productive assets of most companies, the age and composition of these assets should be analyzed. Assets are recorded on the balance sheet at the time of purchase. Overtime, the reported value is reduced by the total depreciation expense, resulting in a net property and equipment value.

Input variables:

P- Property, Plant, and Equipment

D- Depreciation Expense

Output for Formula:

Returns the Average Life of the Asset