How to calculate value of machinery?

To calculate the value of machinery, start by identifying make, model, year, capacity, and key specifications, then confirm serial numbers and major options. Assess current condition, hours of use, maintenance history, and any upgrades or damage. Choose the appropriate standard of value: fair market value (typical sale between willing buyer/seller), orderly liquidation (reasonable time), or forced liquidation (quick sale). Use market comparables from auction records, dealer listings, and price guides, adjusting for hours, condition, and location. For newer machinery, consider cost approach (replacement cost minus physical, functional, and economic depreciation). Document assumptions, photos, and sources. When stakes are high (estate, lending, litigation), hire a certified machinery and equipment appraiser.

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