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Depreciation (Straight Line) Calculator

Work out depreciation (straight line) instantly with clear inputs, formula shown and shareable results.

About Depreciation (Straight Line) Calculator

Straight-line depreciation spreads the depreciable amount — cost less residual value — evenly across the useful life. It is the default method for assets that deliver benefit uniformly over time, such as buildings, fixtures and most software licences.

Formulas

Annual charge

Annual depreciation = (Cost - Residual value) / Useful life

Net book value

NBV = Cost - Accumulated depreciation

Worked example

With the default values below, Depreciation (Straight Line) Calculator returns Annual depreciation charge of $13,125.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Asset cost
120,000
Residual (salvage) value
15,000
Useful life
8 years
Years elapsed
3

Results

Annual depreciation charge
$13,125.00
Accumulated depreciation
$39,375.00
Net book value
$80,625.00
Annual rate on cost
10.94%

Step by step

  1. 1Values used
  2. 2Annual charge
  3. 3Net book value
  4. 4Annual depreciation charge= 13,125.00
  5. 5Accumulated depreciation= 39,375.00
  6. 6Net book value= 80,625.00
  7. 7Annual rate on cost= 10.94

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Can book value fall below residual value?

No. Depreciation stops once the carrying amount reaches the residual value, which is why the accumulated figure is capped here.

What if I revise the useful life?

Spread the remaining carrying amount less residual over the revised remaining life. Prior years are not restated.

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