Straight Line Depreciation Calculator

Straight Line Depreciation Calculator helps calculating the simple straight line depreciation of assets.

Depreciation is a method of reallocating the cost of a tangible asset over its useful life span of it being in motion. Businesses depreciate long-term assets for both tax and accounting purposes. The former affects the balance sheet of a business or entity, and the latter affects the net income that they report. Generally the cost is allocated, as depreciation expense, among the periods in which the asset is expected to be used. This expense is recognized by businesses for financial reporting and tax purposes. Methods of computing depreciation, and the periods over which assets are depreciated, may vary between asset types within the same business and may vary for tax purposes.

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 the life.

the relevant formula:

Depreciation = (Cost - Salvage) / Life

Where:

Asset Cost = the original value of the asset or the depreciable cost. The necessary amount expended to get an asset ready for its intended use.

Salvage Value = the value of the asset at the end of its useful life; also known as residual value or scrap value.

Useful Life = the expected time that the asset will be productive for its expected purpose



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