Enter Asset Cost $, Salvage Value $ and Useful Life (Years) and the remaining scenario settings to review straight-line annual depreciation with this tool. Depreciation is an allocation of cost, not a cash payment or necessarily a decline in market price.
| Year | Depreciation | Accumulated | Book Value |
|---|
Straight-line depreciation = (Asset cost − Salvage value) ÷ Useful lifeThe calculation links Asset Cost $, Salvage Value $ and Useful Life (Years) to straight-line annual depreciation. Depreciation is an allocation of cost, not a cash payment or necessarily a decline in market price. Salvage value changes the amount allocated.
Enter Asset Cost $, Salvage Value $ and Useful Life (Years) and the remaining scenario settings to review straight-line annual depreciation with this tool. Depreciation is an allocation of cost, not a cash payment or necessarily a decline in market price.
Allocate an asset’s depreciable cost over its modeled useful life using the selected method. Compare the annual expense profile with the remaining book value.
Depreciation is an allocation of cost, not a cash payment or necessarily a decline in market price. Salvage value changes the amount allocated.
Prepare Asset Cost $, Salvage Value $, Useful Life (Years) and Depreciation Method. Enter acquisition cost, residual value and useful life on a consistent basis, then choose the intended depreciation method.
Depreciation is an allocation of cost, not a cash payment or necessarily a decline in market price. Salvage value changes the amount allocated. Tax depreciation, local accounting rules, partial-year conventions and impairment may require different schedules. The output is not a tax deduction determination.
Use the full settings in the worked-example table. They produce Straight-line annual depreciation: $1800.00; First-year double-declining depreciation: $4000.00; First-year sum-of-years-digits depreciation: $3000.00. Compare the method and units as well as the displayed number.
The displayed relationship is Straight-line depreciation = (Asset cost − Salvage value) ÷ Useful life Enter acquisition cost, residual value and useful life on a consistent basis, then choose the intended depreciation method.
Tax depreciation, local accounting rules, partial-year conventions and impairment may require different schedules. The output is not a tax deduction determination. Check the original measurement, source data and the convention required by the task.
Worked depreciation calculator example. Set Asset Cost $ = 10000; Salvage Value $ = 1000; Useful Life (Years) = 5; Depreciation Method = Declining Balance (200%). The corresponding output is Straight-line annual depreciation: $1800.00; First-year double-declining depreciation: $4000.00; First-year sum-of-years-digits depreciation: $3000.00. The three figures compare separate depreciation methods for the same asset; they are not amounts to add together.
Allocate an asset’s depreciable cost over its modeled useful life using the selected method. Compare the annual expense profile with the remaining book value.
Enter acquisition cost, residual value and useful life on a consistent basis, then choose the intended depreciation method.
| Field | Example value | Entry check |
|---|---|---|
| Asset Cost $ | 10000 | Check whether this amount is one-time, monthly or annual before entering it. |
| Salvage Value $ | 1000 | Enter the value for this scenario using the field label as the reference. |
| Useful Life (Years) | 5 | Use the period unit in the field label; months and years are not interchangeable. |
| Depreciation Method | Declining Balance (200%) | Select the method before interpreting the result; different modes answer different questions. |
Relationship used for this example: Straight-line depreciation = (Asset cost − Salvage value) ÷ Useful life
Depreciation is an allocation of cost, not a cash payment or necessarily a decline in market price. Salvage value changes the amount allocated.
| Output | Displayed result |
|---|---|
| Straight-line annual depreciation | $1800.00 |
| First-year double-declining depreciation | $4000.00 |
| First-year sum-of-years-digits depreciation | $3000.00 |
These rows compare separate depreciation methods for the same asset. Select each method in turn; do not add the three annual charges together.
Depreciation is an allocation of cost, not a cash payment or necessarily a decline in market price. Salvage value changes the amount allocated. Tax depreciation, local accounting rules, partial-year conventions and impairment may require different schedules. The output is not a tax deduction determination.
Replace the illustrative asset cost $ value (10000) with your own value, then complete the other inputs for the same scenario. Enter acquisition cost, residual value and useful life on a consistent basis, then choose the intended depreciation method.