Calculate straight-line depreciation for any fixed asset: annual depreciation expense, accumulated depreciation, remaining book value, and the depreciation rate, based on cost, salvage value, and useful life.
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$
yrs
yr #
Results
Calculated
Annual depreciation
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Straight-line expense per year
Accumulated depreciation
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Total expensed through selected year
Book value
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Remaining value at end of selected year
Depreciation rate
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% of cost depreciated per year
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How to use this calculator
This calculator applies the straight-line depreciation method, the most widely used approach for spreading an asset's cost evenly over its useful life. Enter the asset's original cost, its estimated salvage value, its useful life in years, and the year of the schedule you want to inspect, then click Calculate. Click Clear to reset all fields to their defaults.
Understanding the inputs
Asset cost is the full purchase price of the asset, including any costs required to get it ready for use. Salvage value is what the asset is expected to be worth when it's retired — its estimated resale or scrap value. Useful life is how many years the asset is expected to remain in service. Year to calculate lets you see the accumulated depreciation and book value at the end of any specific year within that useful life.
The formula
Straight-line depreciation is calculated as: Annual Depreciation = (Asset Cost − Salvage Value) ÷ Useful Life. The same dollar amount is expensed every year. Accumulated depreciation through a given year is Annual Depreciation × Number of Years (capped at Cost − Salvage Value), and book value is Asset Cost − Accumulated Depreciation. The depreciation rate is Annual Depreciation ÷ Asset Cost, expressed as a percentage.
Interpreting the results
Annual depreciation is the fixed yearly expense recorded on the books. Accumulated depreciation is the running total expensed from purchase through the selected year. Book value is what remains on the books after that depreciation — it declines each year and converges to the salvage value at the end of the useful life. Depreciation rate shows what percentage of the original cost is depreciated annually.
Frequently Asked Questions
What is the straight-line depreciation formula?
Straight-line depreciation spreads an asset's cost evenly over its useful life: Annual Depreciation = (Asset Cost - Salvage Value) / Useful Life. The same dollar amount is expensed every year until the asset's book value reaches its salvage value.
What is salvage value?
Salvage value (also called residual value) is the estimated amount an asset is worth at the end of its useful life, such as its resale or scrap value. Only the cost above salvage value is depreciated - the asset's book value never depreciates below it under the straight-line method.
What is accumulated depreciation and book value?
Accumulated depreciation is the total depreciation expensed from purchase through a given year: Annual Depreciation x Number of Years. Book value is what remains on the books after that depreciation: Asset Cost - Accumulated Depreciation. Book value converges to salvage value at the end of the useful life.
Is straight-line the only depreciation method?
No. Straight-line is the simplest and most common method, but accelerated methods such as double-declining balance or sum-of-the-years-digits expense more depreciation in earlier years. Tax rules (like MACRS in the US) may require a different schedule than the one used for financial reporting - consult an accountant for tax filings.
Practical Guide for Depreciation Schedule Calculator
Depreciation Schedule Calculator is most useful when the inputs reflect the situation you are actually planning around, not a best-case estimate. Treat the result as a decision aid: it gives you a structured way to compare assumptions, spot outliers, and decide what to verify next. For Finance work, the most important review lens is cash flow, timing, rates, risk tolerance, and the reliability of each assumption.
Start with a baseline run using values you can defend. Then change one assumption at a time and watch which output moves the most. If one input dominates the result, spend your verification time there first. If several inputs have similar influence, use a conservative scenario and an optimistic scenario to create a practical range instead of relying on a single exact number.
Before acting on the result, compare the result with bank statements, invoices, amortization schedules, or accounting exports before making a commitment. This is especially important when the calculator supports a purchase, project plan, performance target, or operational decision. The calculator can make the math consistent, but the quality of the conclusion still depends on current data, clear units, and assumptions that match your real constraints.
When the output looks surprising, slow down and inspect each input in order. A small change in one high-leverage field can move the final number more than several low-leverage fields combined. For Depreciation Schedule Calculator, that means you should first confirm the value with the greatest scale, then confirm the value with the greatest uncertainty, then rerun the calculator with conservative and optimistic assumptions. This sequence turns the calculator from a single answer into a practical decision range.
Review Checklist
Confirm every input uses the unit and time period requested by the calculator.
Run a low, expected, and high scenario so the answer has a useful range.
Check whether rounding or a missing decimal place changes the decision.
Update the calculation monthly or whenever income, rates, expenses, or balances change materially.