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Straight Line Depreciation Calculator

Calculate annual straight-line depreciation, book value, and total depreciable amount from an asset's cost, salvage value, and useful life.

Your Details

Overview

Use this Straight Line Depreciation Calculator to estimate annual depreciation, accumulated depreciation, and current book value for an asset. Enter the asset cost, expected salvage value, useful life, and years used so far to see how value is allocated over time under the straight-line method.

How it works

Straight-line depreciation takes the asset cost, subtracts the salvage value, and spreads the remaining depreciable amount evenly over the useful life. Annual depreciation is calculated as (cost minus salvage value) divided by useful life. Accumulated depreciation is the annual amount multiplied by the number of years used, and book value is the original cost minus accumulated depreciation, not falling below the salvage value.

How to use this calculator

  1. 1Enter the original cost of the asset.
  2. 2Add the expected salvage value at the end of its life.
  3. 3Enter the asset's useful life in years.
  4. 4Input how many years the asset has been used so far.
  5. 5Review the annual depreciation, accumulated depreciation, and current book value.

Example Calculation

Asset Cost

$10,000

Salvage Value

$1,000

Useful Life

5

Years Used So Far

2

Annual Depreciation

$1,800.00

An asset costing 10000 with a salvage value of 1000 and a 5-year useful life has annual straight-line depreciation of 1800. After 2 years, accumulated depreciation is 3600 and the book value is 6400.

Frequently asked questions

What does this straight-line depreciation calculator estimate?

It estimates the annual depreciation amount, total depreciable amount, accumulated depreciation, and current book value of an asset using the straight-line method.

What is straight-line depreciation?

Straight-line depreciation is a method that reduces an asset's value by the same amount each year over its useful life.

How do you calculate straight-line depreciation?

Subtract the salvage value from the asset cost, then divide that amount by the useful life in years.

What is salvage value?

Salvage value is the estimated value of the asset at the end of its useful life, sometimes called residual value.

Why is my book value not going below the salvage value?

Under straight-line depreciation, the asset is usually not depreciated below its estimated salvage value.

Can I use this calculator for tax depreciation?

You can use it as a general estimate, but tax depreciation rules may use different methods, conventions, or recovery periods.

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Assumptions and warnings

Assumptions

  • The calculator uses the straight-line depreciation method, which spreads depreciation evenly over the asset's useful life.
  • Results assume the asset's salvage value and useful life are known and remain unchanged.
  • Years used are treated as full years and are capped at the stated useful life.
  • This is a general estimate and does not account for tax rules, conventions, or partial-year depreciation.

Warnings

  • This calculator provides an estimate only and is not accounting, tax, or financial advice.
  • Depreciation rules can vary by jurisdiction, asset type, and reporting method.