Work out depreciation (straight line) instantly with clear inputs, formula shown and shareable results.
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.
Annual charge
Annual depreciation = (Cost - Residual value) / Useful life
Net book value
NBV = Cost - Accumulated depreciation
No. Depreciation stops once the carrying amount reaches the residual value, which is why the accumulated figure is capped here.
Spread the remaining carrying amount less residual over the revised remaining life. Prior years are not restated.