Straight-Line Depreciation Calculator
Calculates equal annual depreciation for any asset based on cost, salvage value, and useful life
Original purchase price of the asset
Estimated value at end of useful life
Expected number of years the asset will be used
Enter asset details to see annual depreciation
Annual depreciation divided by 12
Total amount depreciated over the asset's life
Frequently Asked Questions
What is straight-line depreciation?
Straight-line depreciation spreads the cost of an asset equally over its useful life. The annual amount is (Cost - Salvage Value) / Useful Life. It is the simplest and most commonly used depreciation method.
When should I use straight-line depreciation?
Use it when an asset provides consistent value over its life (office furniture, buildings). For assets that lose value faster early on (vehicles, technology), accelerated methods like declining balance or MACRS may better reflect actual depreciation.
What is salvage value?
Salvage value (or residual value) is the estimated worth of an asset at the end of its useful life. It is what you expect to sell or scrap the asset for. If salvage value is zero, you depreciate the full cost over the useful life.
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