English Reference
noun

depreciation

n.
US /dɪˌpɹiʃiˈeɪʃən/ UK /dɪpɹˌiːʃɪˈeɪʃən/ de·pre·ci·a·tion UK spelling depreciations

  1. 01 B2 Upper Intermediate

    the way something loses value as it gets older and is used, like a car or a computer.

    the gradual decrease in the economic value of an asset due to wear and tear, age, or obsolescence.

    Simple

    The value of a new car suffers from rapid depreciation as soon as you drive it home.

    In context

    The company accounted for the depreciation of its manufacturing equipment over a ten-year period to reflect its diminishing utility.

    Usage

    Uncountable when referring to the general process; countable when referring to a specific calculated amount.

  2. 02 C1 Advanced Technical Accounting

    a way for businesses to spread the cost of an expensive item over many years.

    the systematic allocation of the cost of a tangible asset over its useful life.

    Simple

    The accountant calculated the annual depreciation to help lower the company's tax bill.

    In context

    Straight-line depreciation remains the most common method for distributing the cost of office furniture across several fiscal years.

    Usage

    Often used with the verbs 'calculate', 'record', or 'allow for'.

    Teacher's tip

    In technical accounting, distinguish this from 'impairment', which refers to a sudden, unexpected drop in value.

  3. 03 C2 Proficiency FormalLiterary

    the act of saying that something is not important or has little value.

    the act of belittling or representing something as being of little worth.

    Simple

    His constant depreciation of my hard work made me want to quit the project.

    In context

    The critic's depreciation of the novel's structure seemed unfair given the experimental nature of the prose.

    Teacher's tip

    This sense is much rarer than the financial one and is typically found in formal writing or older literature.

    belittlementdisparagementdetraction

The Iranian currency was under renewed pressure on Monday and the inflationary impact of its rapid depreciation is causing growing concern to MPs.

The Guardian· 31 Aug 2026

Iranians are facing runaway food inflation, closed petrol stations and a seemingly never-ending depreciation of the nation’s currency caused by a lack of foreign exchange reserves.

The Guardian· 31 Aug 2026

From French dépréciation.

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

This entry
Origin French dépréciation
Level C1 · Advanced
Frequency Frequent
Updated