A familiar situation
When tracking equipment value for a simple book schedule, enter cost, salvage value and useful life. Inspect different years to see straight-line depreciation; tax depreciation may follow different rules.
How to use this calculator
- Enter asset cost, salvage value, useful life / holding period and the remaining inputs.
- Select Calculate to see the answer and its breakdown.
- Keep a scenario, change an input and compare the results.
Use consistent units and check the assumptions below before applying the result.
How depreciation is calculated
Straight-line depreciation allocates the depreciable cost evenly across the useful life. Accounting and tax rules may prescribe a different method or first-year convention. Formula: Annual depreciation = (cost − salvage value) ÷ useful life. Use the displayed details to inspect the intermediate amounts and replace example assumptions with terms from your own quote or records.
Annual depreciation = (cost − salvage value) ÷ useful life.A $30,000 asset with $3,000 salvage over 5 years depreciates by $5,400 annually.
Assumptions & useful context
Straight-line book depreciation only; tax depreciation may use different methods.
Financial projections use your assumptions. Actual returns, lender terms, fees and tax rules can differ; these results do not guarantee a future outcome.
Frequently asked questions
Depreciation Calculator: what does the result include?
The calculator uses straight-line depreciation, spreading cost less salvage value evenly over the useful life.
Depreciation Calculator: which assumptions matter most?
Treat it as a book-value estimate. Tax depreciation rules may use other methods, recovery periods and conventions.