Residual Value – Importance, Calculation and Examples

Hero Housing Finance Ltd22 Oct, 2024Finance

If you are a business owner, one term that you may hear from your accounts department on a daily basis is 'Depreciation'. Every asset in your office loses its worth over time, whether laptops, machines, or vehicles. Regular usage and technological upgrades render your existing assets useless after a few years. Now, the question is, what do you usually do when an asset completes its useful life? Do you sell it to make some money? If yes, then how do you decide the resale value? To answer all these questions, you need to understand the 'Residual Value' meaning.