The Depreciation Book Value Formula is a tool used to determine the net value of an asset after accounting for its depreciation over time. It takes into account original purchase cost, salvage value, estimated useful life and estimated residual value. By subtracting any accumulated depreciation from an asset’s initial cost, businesses can assess what the current market value of that asset might be. The Depreciation Book Value Formula helps to ensure accurate record-keeping and financial planning provide an important level of accuracy when it comes to calculating an asset’s worth.