Straight Line Depreciation Calculator
About the Straight Line Depreciation Calculator
Calculate yearly depreciation with the straight-line method. Enter the cost of the asset, its salvage (residual) value at the end of its life and its useful life in years.
How it is calculated
Annual depreciation = (cost − salvage value) ÷ useful life
The straight-line method spreads the depreciable amount evenly over the useful life, so the expense is the same every year. It is the simplest and most widely used depreciation method in accounting.
Example
A machine bought for 50,000 with a salvage value of 5,000 and a useful life of 9 years is depreciated by (50,000 − 5,000) ÷ 9 = 5,000 per year.
Frequently asked questions
What is salvage value?
The amount you expect to get for the asset at the end of its useful life; it can be zero.
How do I find the useful life?
From company policy, tax rules or industry practice; tax authorities often publish tables per type of asset.
What other depreciation methods exist?
Declining balance, sum-of-the-years'-digits and units of production, which give more depreciation in the early years or by usage.