Work out server depreciation instantly with clear inputs, formula shown and shareable results.
Straight-line depreciation spreads the purchase price less residual value evenly across the useful life, which is the usual treatment for server hardware over three to five years. The monthly charge is the figure that matters for comparing owned infrastructure against cloud pricing, since it converts a capital outlay into a run-rate.
Straight-line depreciation
annual charge = (price - residual) / useful life; book value = price - annual charge x years elapsed
Several have extended server depreciation to six years or more, which reduces the annual charge substantially. It reflects genuinely longer service lives for well-utilised hardware.
For total cost of ownership yes: rack space, power, cooling, network ports and support contracts all belong in the comparison against cloud pricing.