Straight-line depreciation calculator
This method spreads the asset cost evenly over its useful life and is the one most used in the books.
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How to use it
- Enter asset cost, salvage value and useful life.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Annual depreciation = (cost − salvage value) ÷ useful life. Monthly = annual ÷ 12. Rate = 100 ÷ life.
Example
Inputs: Asset cost = 50,000, Salvage value = 5,000, Useful life = 5 years. Result: Annual depreciation: 9,000.00; Monthly depreciation: 750.00; Annual depreciation rate: 20%.
Limits and caveats
- Uses full years and does not prorate the first year by purchase date.
- Tax depreciation rules may set fixed rates that differ from this method.
Questions about this tool
Example: equipment at 50,000, salvage 5,000, 5 years?
Annual depreciation is (50,000 − 5,000) ÷ 5 = 9,000, or 750 a month.
What is salvage value?
The amount you expect to sell the asset for at the end of its useful life; it can be zero.
Does book value fall evenly?
Yes, it drops by the same amount each year until it reaches salvage value in the last year.