Furniture Depreciation Calculator

Furniture depreciation is typically calculated using the straight-line method: (Original Price - Salvage Value) / Useful Life = Annual Depreciation. For example, a $1,500 sofa with a 7-year lifespan and 10% salvage value ($150) depreciates by about $193 per year: ($1,500 - $150) / 7 = $192.86. After 3 years, it would be worth approximately $921. However, real-world value also depends on condition, brand reputation, style trends, and local market demand. The declining balance method front-loads depreciation, making items lose more value in early years, which often better reflects actual resale markets where "like new" items command higher premiums.

The IRS generally assigns furniture a 7-year useful life for business depreciation purposes, but actual functional lifespans vary significantly by type and quality: Sofas and upholstered furniture typically last 7-15 years depending on frame quality and cushion construction; Mattresses should be replaced every 7-10 years for hygiene and support; Wood dining tables and case goods (dressers, armoires) can last 15-25 years or longer if well-made from solid wood; Office chairs typically last 5-10 years with daily use; Outdoor furniture lasts 5-15 years depending on material and weather exposure; Antique furniture can last indefinitely and may actually appreciate in value. Higher quality construction, solid hardwood materials, and proper maintenance significantly extend useful life.

Furniture typically loses 15-20% of its value in the first year, then depreciates more gradually afterward. Using straight-line depreciation over a 7-year lifespan with 10% salvage value, furniture loses about 12-13% annually. However, real-world depreciation is often front-loaded: Year 1: 15-20% loss (no longer "new"); Years 2-3: 10-12% per year; Years 4-7: 8-10% per year; After useful life: holds at salvage value (typically 10-15% of original). Premium brands and solid wood furniture depreciate more slowly and retain more resale value. Fast-fashion furniture from budget retailers may lose value much faster, sometimes becoming nearly worthless after 3-5 years due to lower build quality and changing trends.

Used furniture typically sells for 20-50% of its original retail price, depending on several factors: Excellent condition (like new): 40-50% of original price; Good condition (normal wear): 25-35% of original price; Fair condition (visible wear): 15-25% of original price; Poor condition (damage/stains): 5-15% of original price. Brand significantly impacts resale: premium brands like Restoration Hardware, Pottery Barn, and designer furniture retain 40-60% of value; mid-range brands like West Elm, Crate & Barrel retain 30-40%; budget furniture from IKEA, Wayfair typically retains only 15-25%. Antiques and vintage pieces may hold value or appreciate. Selling venue matters too: consignment stores take 40-50% commission but reach buyers willing to pay more; Facebook Marketplace and Craigslist are free but require more effort; estate sales typically yield lower prices but sell quickly.

For personal/household furniture, depreciation isn't tax-deductible, but understanding it is valuable for: Insurance claims - knowing replacement cost vs. actual cash value (ACV) helps ensure adequate coverage and realistic claim expectations; Selling used furniture - calculate fair asking prices based on age and condition; Estate planning and division - fairly value furniture when dividing assets; Moving decisions - determine if it's worth paying to move old furniture vs. selling and buying new; Divorce settlements - establish fair market value for asset division. For business furniture used in a home office, you may be able to claim depreciation deductions using MACRS (Modified Accelerated Cost Recovery System) over 7 years. Consult a tax professional for specific advice on business-use furniture depreciation.

Condition significantly impacts furniture value, often more than age alone: Excellent/Like New (100-115% of calculated value): No visible wear, all original parts, no odors, no repairs needed, original cushions firm. May command premium if recent model. Good (85-100% of calculated value): Minor wear consistent with age, no structural issues, cushions show some compression, minor scratches on wood, overall clean and functional. Fair (65-80% of calculated value): Noticeable wear, minor repairs needed, some fading or pilling on fabric, scratches visible, cushions noticeably worn, still structurally sound. Poor (40-60% of calculated value): Significant damage, major repairs needed, stains, odors, broken parts, structural issues, heavy wear. May only have value for parts or refinishing projects. Factors that reduce value regardless of age: Pet damage/odors, smoke odors, water damage, missing cushions/parts, outdated upholstery, and structural issues.

The best depreciation method depends on your purpose: Straight-Line Method: Best for general estimates and insurance purposes. Spreads depreciation evenly over useful life. Simple to calculate and understand. Use for: insurance valuations, estate planning, casual resale estimates. Declining Balance Method: More accurately reflects how furniture loses value quickly when new then stabilizes. Items lose more value in years 1-3, then depreciate more slowly. Use for: accurate resale pricing, business accounting, understanding true market value curves. Sum-of-Years-Digits: Similar to declining balance but with a different calculation. Accelerates early depreciation but less aggressively. Use for: business tax purposes, detailed financial planning. For most personal use cases, straight-line is sufficient. For selling furniture or business purposes, declining balance better reflects actual market behavior where buyers pay significant premiums for newer items.

While most furniture depreciates, certain pieces can appreciate over time: Antiques (100+ years old): Well-preserved antiques often appreciate, especially from renowned periods (Victorian, Art Deco, Mid-Century Modern). Provenance and documentation add value. Designer/Limited Edition pieces: Furniture from famous designers (Eames, Nakashima, Knoll) can appreciate significantly. Limited production runs become collectible. Vintage pieces (20-100 years old): Mid-century modern furniture from the 1950s-70s has seen dramatic appreciation. Quality vintage pieces from recognized manufacturers are highly sought after. High-quality solid wood: Solid hardwood furniture from quality manufacturers holds value better and may appreciate as similar quality becomes rarer and more expensive new. Investment tips: Buy quality over quantity; choose timeless designs over trends; maintain properly; keep documentation and receipts; research before buying to identify potentially valuable pieces. However, treat furniture primarily as functional items rather than investments—appreciation is never guaranteed.