Work out building depreciation instantly with clear inputs, formula shown and shareable results.
Straight line depreciation spreads the difference between construction cost and residual value evenly over the useful life. Valuers use it for the cost approach: depreciated replacement cost is what it would cost to rebuild today, less accumulated depreciation for age and condition.
Annual depreciation
Annual = (cost - residual value) / useful life
Depreciated value
Value = cost - annual x age, floored at the residual value
Annual = (cost - residual value) / useful life. Straight line depreciation spreads the difference between construction cost and residual value evenly over the useful life.
No. Land is not depreciated because it does not wear out. Only the structure and its services depreciate, which is why the split between land and building value matters for tax.
This calculator takes 4 inputs: Original construction cost, Age of building, Useful life, Residual value. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.