Depreciation Calculator
Calculate the annual depreciation expense using the straight-line method. Enter the asset cost, salvage value, and useful life in years.
Published by:
isCalculator Editorial Team
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How to use this tool?
Follow these steps to calculate straight-line depreciation:
- Enter Asset Cost ($) – The initial purchase price of the asset (e.g., 10,000). Must be a positive number.
- Enter Salvage Value ($) – The estimated value at the end of its useful life (e.g., 1,000). Can be zero, but must be non-negative.
- Enter Useful Life (years) – How many years the asset will be used (e.g., 5). Must be a whole number of at least 1.
- Click "Calculate Depreciation" – The calculator will validate your inputs and show the annual depreciation expense.
Result: The annual depreciation is computed as (Asset Cost - Salvage Value) ÷ Useful Life. If salvage value equals or exceeds cost, depreciation is $0.00.
All values are in US dollars ($). No other units are required.
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Frequently Asked Questions
Straight-line depreciation spreads the cost of an asset evenly over its useful life. The formula is (Cost - Salvage Value) / Useful Life.
This calculator provides a basic estimate. For tax depreciation, consult a tax professional as methods like MACRS may apply.
If salvage value is zero, depreciation is simply the asset cost divided by useful life. Enter 0 in the salvage value field.
