Financial Tool

Depreciation Calculator

Calculate asset depreciation using the straight-line method for tax and accounting purposes.

Annual Depreciation
$1,800
Total Depreciable Amount
$9,000

Depreciation Schedule

YearDepreciationEnding Book Value
Year 1$1,800$8,200
Year 2$1,800$6,400
Year 3$1,800$4,600
Year 4$1,800$2,800
Year 5$1,800$1,000

This calculation assumes the asset is placed in service at the beginning of the year. For partial years, the first year depreciation should be prorated.

Σ The Formula

Annual Depreciation = (Cost - Salvage Value) / Useful Life

Real World Examples

Company Vehicle
$30,000 cost, $5,000 salvage, 5-year life. Annual: $5,000.
Office Equipment
$5,000 laptop, $0 salvage, 3-year life. Annual: $1,666.67.

# About This Calculator

Asset Depreciation is the process of allocating the cost of a tangible asset over its useful life. It represents how much of an asset's value has been used up.

The Straight-Line Method is the simplest and most commonly used depreciation method. it assumes that the asset will lose an equal amount of value every year until it reaches its salvage value.

How To Use

  1. Enter the **Initial Cost** of the asset.
  2. Enter the **Salvage Value** (estimated value at the end of its life).
  3. Enter the **Useful Life** in years.
  4. The tool calculates the **Annual Depreciation** and provides a year-by-year schedule.

Frequently Asked Questions

What is Salvage Value?+

Salvage value is the estimated resale value of an asset at the end of its useful life. For many assets, this is zero if it's expected to be scrapped.

Why use Straight-Line depreciation?+

It is simple to calculate and provides a consistent expense for financial reporting, making it the most popular choice for businesses.

Is Depreciation Calculator free to use?+

Yes, Depreciation Calculator on Matheric is completely free to use. We believe in accessible education and utility for everyone.

How accurate is Depreciation Calculator?+

We use standard mathematical formulas and high-precision computing algorithms to ensure results for Depreciation Calculator are accurate for academic and professional use.

Can I use Depreciation Calculator on my phone?+

Yes! Depreciation Calculator is fully responsive and optimized for all devices, including smartphones, tablets, and desktops.

Do you save my data?+

No. We prioritize your privacy. All calculations are performed in your browser or temporarily processed, and we do not store your personal input data.

About

Asset Depreciation is the process of allocating the cost of a tangible asset over its useful life. It represents how much of an asset's value has been used up.

The Straight-Line Method is the simplest and most commonly used depreciation method. it assumes that the asset will lose an equal amount of value every year until it reaches its salvage value.

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