Straight-line depreciation
Straight-line depreciation: use asset cost, residual value, useful life. Review the formula, worked example and calculation steps.
Inputs
Use the units shown—
Enter your values and select Calculate.
Formula & explanation
Annual depreciation = (cost − residual value)/useful life
Variables & units
- Asset cost
- currency · minimum 0, maximum 1000000000000
- Residual value
- currency · minimum 0, maximum 1000000000000
- Useful life
- years · minimum 0.000001, maximum 1000
Worked example
10,000 cost, 1,000 residual and 5-year life gives 1,800 per year.
Assumptions
Straight-line accounting estimate, not jurisdiction-specific tax depreciation. No partial-year convention.
Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.
Practice with an example
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