What is the straight-line depreciation formula?

Annual Depreciation = (Cost - Salvage Value) / Useful Life. The depreciable base (cost minus salvage value) is divided equally across every year of the asset's useful life.

What is salvage value?

Salvage value (also called residual value) is the amount you expect to recover when you dispose of the asset at the end of its useful life. If the asset will have no value, enter 0.

What is the depreciation rate in the straight-line method?

The straight-line depreciation rate is 1 / Useful Life, expressed as a percentage. For a 10-year asset, the rate is 10% per year. The same percentage applies to the depreciable base every year.

When should I use straight-line depreciation?

Straight-line depreciation is best for assets that lose value evenly over time, such as office furniture, buildings, and certain equipment. It is the simplest method and is widely accepted under US GAAP and IFRS.

Book value (or net book value) is the asset's original cost minus accumulated depreciation to date. It represents the asset's carrying value on the balance sheet. Book value reaches salvage value at the end of the useful life.

Can salvage value be higher than cost?

No. Salvage value cannot exceed asset cost. If both are equal, the depreciable base is zero and no depreciation is recorded over the asset's life.

Straight Line Depreciation Calculator

Name: Straight Line Depreciation Calculator
Availability: InStock
Author: Nham Vu

Enter asset cost, salvage value, and useful life to instantly calculate annual depreciation expense, depreciation rate, and a full schedule showing book value each year.

Asset Details

Asset Cost ($)

Salvage Value ($)

Estimated value at end of useful life. Enter 0 if none.

Useful Life (years)

Formula

Annual Depr = (Cost − Salvage) ÷ Life
Book Value = Cost − Accum. Depr

Enter asset details to calculate depreciation

Cost, salvage value, and useful life are required.

Annual Depreciation

Depreciable Base

Depreciation Rate

Salvage Value

Book Value Over Time

Year-by-Year Depreciation Schedule

Year	Depreciation	Accum. Depr.	Book Value

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Summary

Enter asset cost, salvage value, and useful life to instantly calculate annual depreciation expense, depreciation rate, and a full schedule showing book value each year.

How it works

Enter the original purchase price (cost) of the asset.
Enter the salvage value — the estimated worth of the asset at the end of its useful life. Use 0 if the asset will be worthless.
Enter the useful life of the asset in years (1 to 100).
The calculator instantly shows annual depreciation, depreciation rate, and the depreciable base.
Scroll down to see the full year-by-year schedule with accumulated depreciation and book value each year.
Use the Copy Table button to export the schedule as tab-separated text for pasting into a spreadsheet.

Use cases

Computing annual depreciation expense for equipment, machinery, and vehicles.
Preparing fixed-asset schedules for financial statements and tax filings.
Estimating the remaining book value of an asset at any point in its life.
Verifying depreciation entries in accounting software.
Teaching the straight-line method to accounting and finance students.
Planning asset replacement by tracking when book value approaches salvage value.
Comparing the straight-line method with accelerated depreciation alternatives.

Frequently Asked Questions

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Last updated: 2026-05-23 · Reviewed by Nham Vu