diff --git a/app/Http/Controllers/DepreciationsController.php b/app/Http/Controllers/DepreciationsController.php
index 57ad35fea..77a173581 100755
--- a/app/Http/Controllers/DepreciationsController.php
+++ b/app/Http/Controllers/DepreciationsController.php
@@ -63,6 +63,7 @@ class DepreciationsController extends Controller
         $depreciation->months = $request->input('months');
         $depreciation->user_id = Auth::id();
         $depreciation->depreciation_min = $request->input('depreciation_min');
+        $depreciation->depreciation_type = $request->input('depreciation_type');
 
         // Was the asset created?
         if ($depreciation->save()) {
@@ -116,6 +117,20 @@ class DepreciationsController extends Controller
         // Depreciation data
         $depreciation->name             = $request->input('name');
         $depreciation->months           = $request->input('months');
+
+        $request->validate([
+            'depreciation_min' => [
+                'required',
+                'numeric',
+                function ($attribute, $value, $fail) use ($request) {
+                    if ($request->input('depreciation_type') == 'percent' && ($value < 0 || $value > 100)) {
+                        $fail('The depreciation minimum must be between 0 and 100 when depreciation type is percentage.');
+                    }
+                },
+            ],
+            'depreciation_type' => 'required|in:amount,percent',
+        ]);
+        $depreciation->depreciation_type = $request->input('depreciation_type');
         $depreciation->depreciation_min = $request->input('depreciation_min');
 
         // Was the asset created?
diff --git a/app/Models/Depreciable.php b/app/Models/Depreciable.php
index 721135873..f5a29d790 100644
--- a/app/Models/Depreciable.php
+++ b/app/Models/Depreciable.php
@@ -67,7 +67,7 @@ class Depreciable extends SnipeModel
      * @return float|int
      */
     public function getLinearDepreciatedValue() // TODO - for testing it might be nice to have an optional $relative_to param here, defaulted to 'now'
-    {
+    {  ;
         if (($this->get_depreciation()) && ($this->purchase_date)) {
             $months_passed = ($this->purchase_date->diff(now())->m)+($this->purchase_date->diff(now())->y*12);
         } else {
@@ -78,7 +78,7 @@ class Depreciable extends SnipeModel
             //if there is a floor use it
             if(!$this->get_depreciation()->depreciation_min == null) {
 
-                $current_value = $this->get_depreciation()->depreciation_min;
+                $current_value = $this->calculateDepreciation();
 
             }else{
                 $current_value = 0;
@@ -86,7 +86,7 @@ class Depreciable extends SnipeModel
         }
         else {
             // The equation here is (Purchase_Cost-Floor_min)*(Months_passed/Months_til_depreciated)
-            $current_value = round(($this->purchase_cost-($this->purchase_cost - ($this->get_depreciation()->depreciation_min)) * ($months_passed / $this->get_depreciation()->months)), 2);
+            $current_value = round(($this->purchase_cost-($this->purchase_cost - ($this->calculateDepreciation())) * ($months_passed / $this->get_depreciation()->months)), 2);
 
         }
 
@@ -95,7 +95,7 @@ class Depreciable extends SnipeModel
 
     public function getMonthlyDepreciation(){
 
-        return ($this->purchase_cost-$this->get_depreciation()->depreciation_min)/$this->get_depreciation()->months;
+        return ($this->purchase_cost-$this->calculateDepreciation())/$this->get_depreciation()->months;
 
     }
 
@@ -188,4 +188,16 @@ class Depreciable extends SnipeModel
     {
         return new \DateTime($time);
     }
+    private function calculateDepreciation(){
+        $depreciation_min = 0;
+        if($this->get_depreciation()->depreciation_type === 'percentage') {
+            $depreciation_percent= $this->get_depreciation()->depreciation_min / 100;
+            $depreciation_min= $this->purchase_cost * $depreciation_percent;
+            return $depreciation_min;
+        }
+        else{
+            $depreciation_min = $this->get_depreciation()->depreciation_min;
+            return $depreciation_min;
+        }
+    }
 }
diff --git a/database/migrations/2024_07_16_184145_add_deprecitation_type_to_depreciations_table.php b/database/migrations/2024_07_16_184145_add_deprecitation_type_to_depreciations_table.php
new file mode 100644
index 000000000..1a5355f73
--- /dev/null
+++ b/database/migrations/2024_07_16_184145_add_deprecitation_type_to_depreciations_table.php
@@ -0,0 +1,28 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    /**
+     * Run the migrations.
+     */
+    public function up(): void
+    {
+        Schema::table('depreciations', function (Blueprint $table) {
+            $table->string('depreciation_type')->after('depreciation_min')->default('amount');
+        });
+    }
+
+    /**
+     * Reverse the migrations.
+     */
+    public function down(): void
+    {
+        Schema::table('depreciations', function (Blueprint $table) {
+            $table->dropColumn('depreciation_type');
+        });
+    }
+};
diff --git a/resources/views/depreciations/edit.blade.php b/resources/views/depreciations/edit.blade.php
index a5376ea69..fed28918e 100755
--- a/resources/views/depreciations/edit.blade.php
+++ b/resources/views/depreciations/edit.blade.php
@@ -28,8 +28,12 @@
     <label for="depreciation_min" class="col-md-3 control-label">
         {{ trans('admin/depreciations/general.depreciation_min') }}
     </label>
-    <div class="col-md-2" style="padding-left:0px">
-        <input class="form-control"  name="depreciation_min" id="depreciation_min" value="{{ old('depreciation_min', $item->depreciation_min) }}" style="width: 80px; margin-left:15px" />
+    <div class="col-md-2" style="display: flex;">
+        <input class="form-control" name="depreciation_min" id="depreciation_min" value="{{ old('depreciation_min', $item->depreciation_min) }}" style="width: 80px; margin-right: 15px; display: inline-block;" />
+        <select class="form-control select2" name="depreciation_type" id="depreciation_type" data-minimum-results-for-search="Infinity" style="width: 150px; display: inline-block;">
+            <option value="amount" {{ old('depreciation_type', $item->depreciation_type) == 'amount' ? 'selected' : '' }}>Amount</option>
+            <option value="percent" {{ old('depreciation_type', $item->depreciation_type) == 'percent' ? 'selected' : '' }}>Percentage</option>
+        </select>
     </div>
     {!! $errors->first('depreciation_min', '<span class="alert-msg" aria-hidden="true"><i class="fas fa-times" aria-hidden="true"></i> :message</span>') !!}
 </div>