Calculate Depreciation Effortlessly: Free Straight-Line Calculator
Straight-Line Depreciation Calculator
Calculate the annual depreciation expense for an asset using the straight-line method.
Input Your Data
The initial cost of the asset.
The estimated residual value of the asset at the end of its useful life.
The estimated number of years the asset will be used.
Your Results
Total Depreciable Amount:
$0.00
The portion of the asset's cost that will be depreciated over its useful life.
Annual Depreciation:
$0.00
The amount of depreciation expense recognized each year.
How It Works
- Enter the initial cost of the asset.
- Input the estimated salvage value (what the asset is worth at the end of its useful life).
- Provide the estimated useful life of the asset in years.
- Click "Calculate" to see the total depreciable amount and the annual depreciation expense.
- The "Clear" button will reset all fields.
Formula for Total Depreciable Amount: Asset Cost - Salvage Value
Formula for Annual Depreciation: (Asset Cost - Salvage Value) / Useful Life
How the straight-line depreciation calculator works
Straight-line depreciation spreads an asset’s depreciable amount evenly over its useful life. Enter the cost, the residual (salvage) value and the number of years.
Worked example
A machine costs 12,000, has a residual value of 2,000 and a 5-year life. Annual depreciation = (12,000 − 2,000) ÷ 5 = 2,000. After year 1 the book value is 10,000, and after year 5 it is 2,000.
Frequently asked questions
What is the residual value?
The amount you expect to recover from the asset at the end of its life. It is not depreciated.
When is straight-line depreciation suitable?
When an asset gives roughly equal benefit each year, such as buildings or office furniture.
Related: Straight-line depreciation · Residual value · Year-by-year schedule template · All calculators
