What is straight-line amortization?

Straight-line amortization spreads the depreciable cost of an intangible asset evenly over its useful life. Each period receives an identical expense: (Cost minus Residual Value) divided by the number of periods.

What residual value should I use for intangible assets?

Most intangible assets — patents, copyrights, licenses — have a residual value of zero because they have no market value once they expire. Use zero unless you have a binding agreement to sell the asset at a fixed price.

What useful life should I enter for a patent?

A patent's legal life is up to 20 years, but accounting standards require you to use the shorter of the legal life or the expected economic useful life. Many companies use 10–17 years for active patents.

Is goodwill amortized under GAAP?

Under public-company US GAAP (ASC 350), goodwill is tested for impairment rather than amortized. However, private companies may elect to amortize goodwill over up to 10 years under the Private Company Council (PCC) alternative. IFRS does not permit goodwill amortization.

How is intangible amortization different from depreciation?

Both spread asset cost over time, but depreciation applies to tangible assets (equipment, buildings) and intangible amortization applies to non-physical assets (patents, trademarks). Intangibles typically use straight-line only, while tangibles may use accelerated methods.

Can I use this for tax amortization (Section 197)?

IRS Section 197 intangibles — such as goodwill, customer lists, and acquired trademarks — must be amortized over exactly 15 years for US federal tax purposes, regardless of actual useful life. Enter 15 years to calculate your tax deduction.

Amortization of Intangibles Calculator

Name: Amortization of Intangibles Calculator
Availability: InStock
Author: Nham Vu

Calculate annual and monthly straight-line amortization for intangible assets like patents, trademarks, copyrights, and goodwill, with a full amortization schedule.

Asset Details

Asset Type

Asset Cost ($)

Residual Value ($) (usually 0)

Useful Life (years)

Start Year

Annual Expense

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Monthly Expense

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Depreciable Base

—

Useful Life

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Amortization Schedule

Year	Amort. Expense	Accum. Amort.	Book Value

Enter asset details and click Calculate to see your amortization schedule.

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Summary

Calculate annual and monthly straight-line amortization for intangible assets like patents, trademarks, copyrights, and goodwill, with a full amortization schedule.

How it works

Enter the original cost of the intangible asset.
Enter the residual (salvage) value at the end of its useful life (often zero for intangibles).
Enter the useful life in years.
The calculator applies the straight-line formula: (Cost - Residual Value) / Useful Life.
Review the annual and monthly expense amounts plus the full amortization schedule table.
Export or copy the schedule for your accounting records.

Use cases

Compute annual patent amortization for financial statements.
Determine monthly trademark or copyright expense for bookkeeping.
Plan goodwill amortization under private-company GAAP elections.
Build an amortization schedule for purchased software or licenses.
Verify amortization figures before filing corporate tax returns.
Model intangible asset expense when projecting future income statements.
Prepare audit-ready amortization tables for accountants or investors.

Frequently Asked Questions

Last updated: 2026-06-09 · Reviewed by Nham Vu