# Straight Line Depreciation Calculator

A straight line depreciation calculator is a valuable tool that helps individuals and businesses calculate the decrease in value of an asset over time using the straight-line depreciation method. By inputting the initial cost, useful life, and salvage value of the asset, users can determine the annual depreciation expense and the book value at any given point.

Straight Line Depreciation Calculator

Years

Results
Depreciable Base:
1st Year Depreciation Expense:
Final Year Depreciation Expense:

Related

## What is Straight Line Depreciation

A Straight Line Depreciation Calculator is a tool used to calculate the depreciation of an asset using the straight-line method. The straight-line method evenly allocates the cost of an asset over its useful life. It assumes that the asset's value decreases by an equal amount each year.

To use the calculator, you typically need to provide the following information:

1. Initial Cost/Value: The original cost or value of the asset.
2. Salvage Value: The estimated value of the asset at the end of its useful life.
3. Useful Life: The number of years or periods over which the asset is expected to be used.

Once you input these values into the calculator, it calculates and provides the annual depreciation expense, as well as the net book value (asset's value after depreciation) for each year.

The straight-line method formula for calculating annual depreciation is:

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

The net book value for each year is calculated by subtracting the accumulated depreciation from the initial cost.

This calculator is commonly used for financial planning, accounting purposes, and determining the value of assets over time.

## Straight Line Depreciation Formula

### The following algorithms are used in our calculator:

The depreciation per period = the value of the asset minus the final value, which is then divided by the total number of periods.

The number of depreciation periods = the value of the asset minus the final value, which is then divided by the total value per period.

## Straight Line Depreciation Example

Certainly! Here's an example of a table that illustrates the calculation of straight-line depreciation for an asset over a period of 5 years:

Year Initial Cost Salvage Value Useful Life Depreciation Expense Net Book Value
1 \$10,000 \$2,000 5 years \$1,600 \$8,400
2 \$10,000 \$2,000 5 years \$1,600 \$6,800
3 \$10,000 \$2,000 5 years \$1,600 \$5,200
4 \$10,000 \$2,000 5 years \$1,600 \$3,600
5 \$10,000 \$2,000 5 years \$1,600 \$2,000

In this example, we assume that the initial cost of the asset is \$10,000, the salvage value (estimated value at the end of useful life) is \$2,000, and the useful life of the asset is 5 years. The depreciation expense is calculated by subtracting the salvage value from the initial cost and then dividing it by the useful life.

The net book value for each year is calculated by subtracting the accumulated depreciation (cumulative sum of depreciation expenses) from the initial cost.

Please remember that these values are just examples, and the actual figures will vary based on the specific details of your asset and its depreciation.

You may also be interested in our Percentage (Declining Balance) Depreciation Calculator