Straight-Line Depreciation Calculator
Calculate annual depreciation using straight-line method
About this calculator
The Straight-Line Depreciation Calculator helps businesses and individuals determine the annual depreciation expense of an asset using the most common depreciation method. This calculator divides the asset's depreciable amount (cost minus salvage value) evenly across its useful life, providing consistent yearly depreciation amounts. It's essential for accurate financial reporting, tax preparation, and budgeting decisions, making asset management more transparent and compliant with accounting standards.
How to use
Enter the asset's initial cost, estimated salvage value at the end of its useful life, and the number of years the asset will be used. The calculator will automatically compute the annual depreciation expense by subtracting the salvage value from the initial cost and dividing by the useful life years.
Frequently asked questions
What is straight-line depreciation?
Straight-line depreciation spreads an asset's cost evenly over its useful life, resulting in the same depreciation expense each year.
How do I determine an asset's useful life?
Useful life is typically based on industry standards, manufacturer specifications, or IRS guidelines for tax purposes.
What is salvage value?
Salvage value is the estimated worth of an asset at the end of its useful life when it's sold or disposed of.