Straight-Line Depreciation Calculator

Straight-line depreciation spreads the cost of an asset evenly over its useful life. Each year receives the same depreciation expense, calculated as (Cost - Salvage Value) / Useful Life. It is the simplest and most widely used depreciation method.

Annual Depreciation = (Asset Cost - Salvage Value) / Useful Life in Years. For example, a $50,000 asset with $5,000 salvage value over 10 years: ($50,000 - $5,000) / 10 = $4,500 per year.

Use straight-line when the asset provides equal benefit each year, when simplicity is preferred, or for financial reporting under GAAP/IFRS. Common for buildings, furniture, and general equipment.

Salvage value is the estimated worth of the asset at the end of its useful life. It reduces the total amount depreciated. If an asset will have no value at end of life, salvage value is zero.

In the US, the IRS generally requires MACRS for tax depreciation. Straight-line is an option under the Alternative Depreciation System (ADS) for certain assets. For financial reporting, straight-line is standard.

For assets placed in service mid-year, prorate the first and last year depreciation. For example, an asset placed in service on July 1 receives 6/12 of the annual depreciation in year one, with the remainder in the final year.