EachCalculatorDepreciation Calculator
Calculate straight-line depreciation for a business asset — the simplest and most common depreciation method.
Annual Depreciation
$1,000.00
| Year | Depreciation | Accumulated | Book Value |
|---|---|---|---|
| 1 | $1,000.00 | $1,000.00 | $9,000.00 |
| 2 | $1,000.00 | $2,000.00 | $8,000.00 |
| 3 | $1,000.00 | $3,000.00 | $7,000.00 |
| 4 | $1,000.00 | $4,000.00 | $6,000.00 |
| 5 | $1,000.00 | $5,000.00 | $5,000.00 |
| 6 | $1,000.00 | $6,000.00 | $4,000.00 |
| 7 | $1,000.00 | $7,000.00 | $3,000.00 |
| 8 | $1,000.00 | $8,000.00 | $2,000.00 |
| 9 | $1,000.00 | $9,000.00 | $1,000.00 |
How It Works
Straight-line depreciation
The asset's depreciable amount (cost minus salvage value) is spread evenly across its useful life: annual depreciation = (cost − salvage value) ÷ useful life in years.
The depreciation schedule
Each year, the same fixed amount is subtracted from the asset's book value until it reaches the salvage value at the end of its useful life.
Example Calculation
A $10,000 asset with a $1,000 salvage value and a 9-year useful life depreciates $1,000 per year.
Common Mistakes
- Forgetting to subtract the salvage value before dividing — depreciation only applies to the amount the asset is expected to actually lose in value.
- Assuming straight-line is the only depreciation method — accelerated methods (like declining balance) front-load more depreciation into earlier years and are common for tax purposes.
Frequently Asked Questions
- What is salvage value?
- Salvage value (also called residual value) is what the asset is expected to be worth at the end of its useful life — scrap or resale value, for example.
- Is straight-line depreciation used for taxes?
- It's one option, but tax rules in many countries allow or require accelerated depreciation methods for certain asset types — consult a tax professional for actual tax filings.