Straight-Line Depreciation Calculator
The Straight-Line Depreciation Calculator estimates the annual allocation of an asset’s depreciable cost over its useful life. It also estimates accumulated depreciation and remaining book value after a chosen number of elapsed years.
How to use this calculator
- Enter the asset purchase cost.
- Enter the expected salvage value at the end of its useful life.
- Enter the useful life in years.
- Enter the elapsed years to estimate accumulated depreciation and book value.
Straight-line depreciation formula
Annual depreciation = (asset cost − salvage value) ÷ useful life in years.
- The depreciable base is the asset cost minus its estimated salvage value.
- Accumulated depreciation is capped at the depreciable base when elapsed years reach the useful life.
- The calculator only models straight-line depreciation, not tax-specific schedules or impairment.
Worked examples
Three-year depreciation
An asset costs €1,200, has a €120 salvage value and a four-year useful life.
(€1,200 − €120) ÷ 4 = €270 per year.
Annual straight-line depreciation is €270.
Understanding the result
Depreciation is an accounting allocation and does not necessarily reflect current market value.
Accounting and tax rules can require different assumptions or depreciation methods.
Important notes
Use consistent monetary units for cost and salvage value.
Check applicable accounting or tax standards before using this estimate for reporting.
Frequently asked questions
What is straight-line depreciation?
It allocates the depreciable amount evenly over an asset’s useful life.
Is book value the same as market value?
No. Book value is based on recorded cost and accumulated depreciation; market value may be different.
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Related explanations
Learn the method behind the number or compare the terminology before using the calculator.
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This page provides a calculation tool plus explanatory information so you can understand what the result means and when the underlying method may not fit your situation.