Depreciation Calculator
Calculate straight-line depreciation for an asset over its useful life.
Try an example
$4,500.00
About this calculator
How This Depreciation Calculator Works
Enter an asset's cost, its estimated salvage value, and its useful life, and the calculator returns the annual and monthly straight-line depreciation.
Worked Example
A $50,000 asset with a $5,000 salvage value, depreciated over 10 years, loses $4,500 in value each year ($375/month) — for $45,000 in total depreciation over its useful life.
The Formula
Annual depreciation = (Cost − Salvage value) ÷ Useful life. Straight-line depreciation spreads the loss in value evenly across every year of the asset's useful life — the simplest and most common depreciation method, though not the only one.
Other Depreciation Methods
Accelerated methods like declining balance front-load more depreciation into the earlier years of an asset's life, reflecting that many assets (like vehicles and equipment) lose value faster when new. Straight-line is easier to calculate and predict, which is why it's the default choice for financial reporting and general estimating, even when a different method might better track actual resale value.
A Note on Taxes
This calculator uses standard straight-line depreciation for general estimating. Tax depreciation in many jurisdictions follows specific mandated schedules (like MACRS in the US) that can differ meaningfully from straight-line — consult a tax professional for actual filings.
Worked example
A $50,000 asset with a $5,000 salvage value depreciated straight-line over 10 years loses $4,500 in value each year ($375/month).
Frequently asked questions
What is straight-line depreciation?
It spreads an asset's loss in value evenly across its useful life — the same dollar amount depreciates each year, unlike accelerated methods (like declining balance) that front-load more depreciation into earlier years.
What is salvage value?
The estimated resale or scrap value of the asset at the end of its useful life — depreciation only applies to the value the asset is expected to lose, not its full original cost.
Is straight-line the method the IRS requires?
Not always — tax depreciation often follows specific schedules like MACRS in the US, which differ from straight-line. This calculator is for general estimating; consult a tax professional for actual tax filings.