Straight-Line Depreciation Calculator
Enter what an asset cost, what you expect it to be worth at the end of its life and how many years you will use it. You get the depreciation per year and per month, and a table showing the book value each year.
Your numbers
Estimate for information only, not professional advice. Last reviewed .
How we calculate it
Straight-line depreciation spreads the cost evenly over the useful life: yearly depreciation = (cost − salvage value) ÷ useful life. The monthly amount is the yearly amount divided by 12.
Book value each year is the cost minus the depreciation so far, and it ends at the salvage value. A cost of 10,000, a salvage value of 1,000 and a life of 5 years gives 1,800 a year and 150 a month.
Assumptions and limits
- Tax depreciation often follows rules set by your tax authority, such as set lives or accelerated methods. This calculator shows the simple straight-line method only.
- A part year at the end of the life is depreciated in proportion.
- It does not handle assets bought part way through a year.
Frequently asked questions
What is straight-line depreciation?
It is the simplest way to spread the cost of an asset over the years you use it. The same amount is expensed every year.
What is salvage value?
It is the amount you expect the asset to be worth when you stop using it. Only the cost above the salvage value is depreciated.
What is book value?
It is the asset’s cost minus the total depreciation so far. It starts at the cost and falls each year to the salvage value.
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Worked example (a fixed example using the starting numbers, it does not change as you type)
Inputs: Asset cost ($) = 10000; Salvage value at the end ($) = 1000; Useful life (years) = 5.
- Depreciation per year $1,800.00
- Depreciation per month $150.00
- Total to depreciate $9,000.00
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