Understanding TV Depreciation Rates
Televisions and consumer electronics are among the fastest depreciating assets in a household. Unlike real estate which appreciates, or cars which have a structured depreciation curve, technology evolves so rapidly that a top-tier TV from three years ago may now be considered mid-range or obsolete. This TV Depreciation Rate Calculator helps you estimate the current resale market value of your television based on its age and original purchase price.
How TV Value is Calculated
While there is no single mandated formula for used electronics, the Declining Balance Method is widely accepted for estimating the value of tech hardware. This assumes that the TV loses a fixed percentage of its remaining value every year.
The core logic used in this calculator is:
Current Value = Purchase Price × (1 – Depreciation Rate)Age in Years
Key Variables:
- Purchase Price: The initial cost of the unit (excluding taxes and extended warranties, which rarely add resale value).
- Depreciation Rate: Typically, TVs lose between 15% and 25% of their value annually. Premium brands (Sony, Samsung, LG OLEDs) may hold value closer to 15%, while budget brands may drop by 25% or more.
- Age: The number of years since the model was released or purchased.
Factors That Affect Your TV's Resale Value
Beyond the mathematical depreciation, several physical and market factors influence how much a buyer is willing to pay for your used TV:
- Screen Technology: OLED and QLED panels generally retain value better than standard LED or LCD panels due to superior picture quality.
- Resolution: 4K is now the standard. 1080p TVs have depreciated significantly, while 8K TVs are still a niche market with volatile pricing.
- Smart Features: An older TV with an outdated, slow operating system is worth less than a "dumb" TV, as the smart features become a hindrance. However, this is easily mitigated with a cheap streaming stick.
- Physical Condition: Dead pixels, screen burn-in (common in older OLEDs/Plasmas), or bezel scratches will drastically reduce the value below the calculated estimate.
What is the "Useful Life" of a TV?
For accounting and insurance purposes, the useful life of a television is often cited as 5 to 7 years. After this period, the resale value is often negligible (approaching $0 or simple e-waste value), even if the device still functions perfectly. If your TV is older than 7 years, its value is likely determined solely by screen size and basic functionality rather than its original purchase price.
Example Calculation
If you bought a 65-inch 4K TV for $1,500 exactly 3 years ago, and we assume a market standard depreciation rate of 20%:
- Year 1 Value: $1,200 ($1,500 – 20%)
- Year 2 Value: $960 ($1,200 – 20%)
- Year 3 Value: $768 ($960 – 20%)
In this scenario, the TV has retained approximately 51% of its value, and the total cost of ownership was roughly $244 per year.