Free 2026 calculator
Straight-Line Depreciation Calculator
Annual Depreciation = (Cost − Salvage Value) ÷ Useful Life. The same amount is deducted every year until the asset reaches its salvage value. Enter your numbers below — the calculator also generates the full year-by-year schedule.
Depreciation schedule
Same amount every year — that's what makes straight-line simple.
| Year | Annual Dep. | Accumulated | Book Value |
|---|---|---|---|
| Start | — | $0 | $10,000.00 |
| Year 1 | $1,800.00 | $1,800.00 | $8,200.00 |
| Year 2 | $1,800.00 | $3,600.00 | $6,400.00 |
| Year 3 | $1,800.00 | $5,400.00 | $4,600.00 |
| Year 4 | $1,800.00 | $7,200.00 | $2,800.00 |
| Year 5 | $1,800.00 | $9,000.00 | $1,000.00 |
Book value floors at $1,000.00 (salvage value) and does not depreciate further.
How straight-line depreciation works
Find the depreciable base
Subtract salvage value from asset cost. If an asset costs $10,000 and you expect to sell it for $1,000 at end of life, the depreciable base is $9,000.
Divide by useful life
Divide the depreciable base by useful life in years. $9,000 ÷ 5 years = $1,800/year. This is the same amount you deduct every year.
Track book value
Each year, subtract annual depreciation from book value. After 5 years, accumulated depreciation equals the depreciable base and book value equals salvage value.
The straight-line depreciation formula
Annual Depreciation = (Cost − Salvage Value) ÷ Useful Life
Depreciation Rate = 1 ÷ Useful Life × 100%
Example
A $10,000 machine, $1,000 salvage value, 5-year life: ($10,000 − $1,000) ÷ 5 = $1,800/year. Depreciation rate = 1 ÷ 5 = 20%. After 3 years: accumulated depreciation $5,400, book value $4,600.
Straight-line vs other depreciation methods
| Method | Year 1 ($10K asset) | Pattern | Best for |
|---|---|---|---|
| Straight-Line | $1,800 | Equal every year | Buildings, furniture, stable-value assets |
| Double Declining Balance | $4,000 | More in early years | Computers, vehicles, fast-depreciating assets |
| Sum-of-Years' Digits | $3,000 | Moderate front-loading | Middle ground between SL and DDB |
| MACRS (IRS tax) | Varies by class | Accelerated tables | US tax depreciation (required by IRS) |
Example: $10,000 asset, $1,000 salvage, 5-year life.
Frequently asked questions
What is straight-line depreciation?+
Straight-line depreciation spreads an asset's cost evenly over its useful life. Each year you deduct the same amount until the asset reaches its salvage value. It's the simplest and most widely used depreciation method for financial reporting.
What is the straight-line depreciation formula?+
Annual Depreciation = (Asset Cost − Salvage Value) ÷ Useful Life. For example, a $10,000 machine with $1,000 salvage value over 5 years: ($10,000 − $1,000) ÷ 5 = $1,800 per year. The depreciation rate is 1 ÷ Useful Life × 100 (20% for a 5-year asset).
How do I calculate straight-line depreciation step by step?+
Step 1: Find the depreciable base — subtract salvage value from asset cost. Step 2: Divide by useful life in years. Step 3: The result is your annual depreciation. Step 4: Multiply by the year number to get accumulated depreciation. Step 5: Subtract accumulated depreciation from original cost to get book value.
What is the difference between straight-line and double declining balance depreciation?+
Straight-line deducts the same amount every year. Double declining balance (DDB) deducts more in early years — Year 1 is often 2× the straight-line amount — then less in later years. DDB front-loads deductions and is useful for assets that lose value quickly (computers, vehicles). Straight-line is simpler and better for assets that wear evenly over time (buildings, furniture).
How many years do I depreciate an asset?+
For financial reporting, you estimate the asset's actual useful life. For US tax depreciation (MACRS), the IRS assigns asset classes: computers/tech = 5 years, office furniture = 7 years, residential real estate = 27.5 years, commercial property = 39 years. This calculator uses the useful life you enter — for tax purposes, use IRS MACRS tables via Publication 946.
What is salvage value in depreciation?+
Salvage value (also called residual value) is the estimated worth of an asset at the end of its useful life — what you could sell it for as scrap or to a second-hand buyer. Only the depreciable base (cost minus salvage) is written off. If you expect to use an asset until it has no resale value, set salvage value to $0.
Is straight-line depreciation used for tax purposes?+
In the US, tax depreciation follows IRS MACRS tables, which typically use accelerated methods — not straight-line. However, you can elect straight-line under MACRS for assets where consistent deductions are preferred. This calculator shows book depreciation for financial statement purposes. For tax depreciation, consult IRS Publication 946 or a CPA.
What types of assets use straight-line depreciation?+
Buildings and real estate (very long useful life, steady value decline), furniture and fixtures, leasehold improvements, patents and intangibles (called amortization but uses the same method), and any asset that loses value evenly over time. Assets that lose value quickly — computers, vehicles — often benefit from accelerated methods like DDB.
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