The frequency with which an asset (usually a depreciable asset) is replaced by another asset, either with similar/ identical features, or better. The process of replacement has to take into consideration a host of factors including the useful life of the asset, technological changes (improvements), current and expected needs, maintenance costs, etc.

Replacement cycle covers the period over which the asset is purchased, used, and retired. The replacement may be necessitated due to many reasons including expiration of useful life, obsolescence, destruction, and so on.