🏭 Depreciation Calculator
Straight-line depreciation spreads an asset's cost evenly over its useful life: subtract what it will be worth at the end (the salvage value) and divide by the number of years.
Enter the purchase cost, expected salvage value and useful life in years. You get the annual depreciation charge and the remaining book value after years one, two and three.
How to use this calculator
Enter an asset's cost, salvage value and useful life to get straight-line annual depreciation and book values for the first three years.
- Type the Asset cost you paid.
- Enter the expected Salvage value at the end of its life.
- Set the Useful life in years.
- Press Calculate for the annual charge and the book values after years 1, 2 and 3.
Frequently asked questions
How does straight-line depreciation work?
Subtract the salvage value from the cost to get the depreciable amount, then divide by the useful life. The same charge applies every year.
What is a worked example?
A $50,000 asset with a $5,000 salvage value over 10 years depreciates $4,500 a year, leaving book values of $45,500, $41,000 and $36,500 after years one through three.
What is book value?
The cost minus all depreciation charged so far. It is an accounting figure, not necessarily what the asset would sell for.
When would I use a different method?
When an asset loses value faster early on, accountants often use declining-balance or units-of-production methods instead of this even spread.