Depreciation Calculator
Calculate asset depreciation over time.
Understanding Asset Depreciation
Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy.
Straight-Line Method
The straight-line method is the simplest and most commonly used way to calculate depreciation. Under this method, the same amount of depreciation is deducted from the value of an asset each year.
Annual Depreciation = (Asset Cost - Salvage Value) / Useful Life (Years)
- Asset Cost: The original purchase price of the asset.
- Salvage Value: The estimated value of the asset at the end of its useful life.
- Useful Life: The period during which an asset is expected to be productive.