The Average Useful Life of Depreciable Assets Formula is an accounting approach used to determine the depreciation rate for company assets. It takes into account how long those assets will remain useful, and how quickly their value will depreciate over time. By understanding the true cost of each asset, companies can accurately budget for continued use and maintenance costs. Calculating the average useful life of depreciable assets involves accounting for factors such as the initial purchase price, current market value, estimated remaining life, age of the asset and any anticipated repair or maintenance costs. Knowing this information allows businesses to confidently plan for upcoming expenses while maintaining accurate financial records.