Straight Line Depreciation Calculator

Calculate the simple straight line depreciation of assets

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The original value of your asset
Value at the end of useful life
Expected productive years
Enter 4 digits for actual years or 1 to list as 1,2,3…

Annual Depreciation

$2,000.00

Total Depreciation

$10,000.00

Depreciable Amount

$10,000.00

Depreciation Schedule

Year Book Value Start Depreciation Expense Accumulated Depreciation Book Value End

Straight-Line Depreciation Formula

Depreciation in Any Period = ((Cost – Salvage) / Life)

First year depreciation = (Months / 12) × ((Cost – Salvage) / Life)

Last year depreciation = ((12 – Months) / 12) × ((Cost – Salvage) / Life)

Straight Line Depreciation Calculator

Use our free Straight Line Depreciation Calculator to easily determine the annual depreciation expense of your business assets. This method is the simplest and most straightforward way to calculate depreciation, spreading the cost of an asset evenly over its useful life. Simply enter the asset’s cost, its salvage value, and its useful life to generate a complete depreciation schedule.

Understanding the Inputs

To use the calculator accurately, it’s important to understand the key terms:

  • Asset Cost: This is the original value of your asset or the depreciable cost. It includes the purchase price and any necessary amounts expended to get the asset ready for its intended use, such as shipping or installation fees.
  • Salvage Value: Also known as residual or scrap value, this is the estimated value of the asset at the end of its useful life.
  • Useful Life: This is the expected time period that the asset will be productive and used for its intended purpose.

For a more comprehensive tool that covers multiple depreciation methods, you can explore our primary Depreciation Calculator.

The Straight-Line Depreciation Formula

The straight line calculation, as the name suggests, is a straight line drop in asset value. The depreciation of an asset is spread evenly across its life. The formula for any full period is simple:

Depreciation Expense = (Asset Cost - Salvage Value) / Useful Life

Partial Year Depreciation:
Assets are often purchased mid-year. When the first year has M months, the calculation is adjusted:

  • First Year Depreciation = (M / 12) * ((Cost - Salvage) / Life)
  • Last Year Depreciation = ((12 - M) / 12) * ((Cost - Salvage) / Life)

Because of this partial first year, an asset with a life of, for example, 5 years will often be depreciated across 6 tax years.

Straight-Line Depreciation Example

Let’s walk through a practical example. Suppose an asset for a business costs $11,000, will have a life of 5 years, and a salvage value of $1,000. It was placed in service 8 months before the end of the fiscal year.

First, calculate the depreciable base: $11,000 – $1,000 = $10,000
Depreciation for any full 12-month period: $10,000 / 5 years = $2,000 per year.

Depreciation Schedule:

YearBook Value Year StartDepreciation ExpenseAccumulated DepreciationBook Value Year End
2012$11,000.00$1,333.33$1,333.33$9,666.67
2013$9,666.67$2,000.00$3,333.33$7,666.67
2014$7,666.67$2,000.00$5,333.33$5,666.67
2015$5,666.67$2,000.00$7,333.33$3,666.67
2016$3,666.67$2,000.00$9,333.33$1,666.67
2017$1,666.67$666.67$10,000.00$1,000.00
  • First Year (8 months): (8/12) * $2,000 = $1,333.33
  • Years 2-5: Full $2,000 per year.
  • Final Year (4 months): (4/12) * $2,000 = $666.67

Microsoft® Excel® Equivalent

The Excel function for the Straight-Line Method is SLN(cost, salvage, life). This function will calculate the depreciation expense for any single period. For example, =SLN(11000, 1000, 5) would return $2,000.

When to Use Straight-Line vs. Accelerated Methods

Straight-line depreciation is best for assets whose value declines steadily over time, such as office furniture or buildings. However, some assets lose value more quickly in their early years. For these, an accelerated method is often more appropriate.

If you need to calculate a faster write-off, consider our Declining Balance Depreciation Calculator. This method applies a fixed percentage to the declining book value each year.

A specific and common form of this is the Double Declining Balance Method, which doubles the straight-line rate. You can model this accelerated approach with our Double Declining Balance Depreciation Calculator.

Another powerful tool is our Fixed Declining Balance Depreciation Calculator, which allows you to set a custom depreciation rate, offering flexibility for specific accounting or tax scenarios.

Understanding how to calculate depreciation is crucial for accurate business accounting and tax filing. The straight-line method provides a simple and consistent approach. For more complex scenarios or to compare different depreciation methods, our suite of financial calculators provides the tools you need to make informed decisions.