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Straight-line depreciation calculator

Compute the yearly straight-line depreciation of an asset.

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The Straight-line depreciation calculator turns Asset cost, Salvage value, Useful life (years) into Annual depreciation, Depreciable base, instantly and for free. For instance, with Asset cost = $10,000.00, Salvage value = $1,000.00 and Useful life (years) = 5 it returns Annual depreciation = $1,800.00 and Depreciable base = $9,000.00.

How to use it

  1. Enter your values: Asset cost, Salvage value, Useful life (years).
  2. Read the result instantly: Annual depreciation, Depreciable base.

Frequently asked questions

How does the Straight-line depreciation calculator work?

It takes Asset cost, Salvage value and Useful life (years) and derives Annual depreciation and Depreciable base from them. The calculation is live as you type, so the result updates on every change.

Which values does the calculator ask for?

3 values: Asset cost ($), Salvage value ($) and Useful life (years). Nothing else is required — no account, no file upload.

What does a typical calculation look like?

With Asset cost = $10,000.00, Salvage value = $1,000.00 and Useful life (years) = 5, the calculator returns Annual depreciation = $1,800.00 and Depreciable base = $9,000.00. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

How much does the result change with different inputs?

It moves a lot. Using Asset cost = $20,000.00, Salvage value = $2,000.00 and Useful life (years) = 10 instead, Depreciable base goes from $9,000.00 to $18,000.00 — which is why it is worth testing a few scenarios rather than trusting a single figure.

What does it give for smaller values?

Scaled down to Asset cost = $5,000.00, Salvage value = $500.00 and Useful life (years) = 3, Annual depreciation comes out at $1,500.00. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Running the week: issuing an invoice or a quote, knowing what is in stock and what to reorder, and seeing whether cash covers what is due.

What is the most common mistake?

Reading profit as cash. A profitable month with sixty-day payment terms can still leave the account empty — the two numbers answer different questions.

What is the difference between the Straight-line depreciation calculator and the Double declining depreciation calculator?

This one returns Annual depreciation and Depreciable base; the Double declining depreciation calculator returns Year 1 depreciation and Depreciation rate. That is the whole difference — open the one whose figure you need.

Is there a tool for the next step?

Payback period calculator is the closest one after this: Work out how long an investment takes to pay for itself.

What else is worth having open alongside it?

Debt-to-asset ratio calculator and EBITDA calculator — they come up in the same task often enough to be worth a second tab.

Further reading

All guides →
ComparisonStraight-Line vs Declining-Balance DepreciationBoth methods write off exactly the same total cost. Only the timing differs — and timing is worth money. A full year-by-year schedule for one asset, the crossover year, the switch-to-straight-line convention, and the present value of the tax deferral computed at 8%.ComparisonThree Schedules for One Machine: Straight Line, Declining Balance, Units of ProductionA $50,000 machine with a $5,000 salvage value and a five-year life. Straight line deducts $9,000 in year one, double declining balance $20,000, and MACRS $10,000. The lifetime total is the same; only the timing moves — and the timing is worth about $320.ComparisonBuying or Leasing Equipment: Which Number Actually Decides ItThe received wisdom is that the tax treatment of depreciation settles the buy-or-lease question. Modelled on a 60,000-euro machine over five years, it does not: it ranks third, and a long way behind. Here is the ranking, computed, and the conditions under which it flips.ExplainerActual Cash Value: The Subtraction You Agreed To Before the LossA twelve-year-old roof that costs $20,000 to replace is worth $10,400 on a straight-line schedule. After a $2,000 deductible, an actual cash value policy pays $8,400 and a replacement cost policy pays $18,000 — same roof, same loss, $9,600 apart.ExplainerFixed-Charge Cover: the Ratio a Landlord or a Lender Looks AtThe same company, the same year, reads 1.02×, 1.52× or 2.56× depending on where rent is put and whether principal is grossed up for tax. Two of those pass a 1.25 covenant and one does not.ComparisonInterest Coverage and the Ratios a Lender Actually TestsA loan agreement's covenants are the ratios that can put a solvent, profitable company into default. Interest coverage, times interest earned and DSCR are not three measures — and the one that adds principal repayment is the one that bites.