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Server Depreciation Calculator

Work out server depreciation instantly with clear inputs, formula shown and shareable results.

About Server Depreciation Calculator

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.

Formula

Straight-line depreciation

annual charge = (price - residual) / useful life; book value = price - annual charge x years elapsed

Worked example

With the default values below, Server Depreciation Calculator returns Current book value of $7,920.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Purchase priceminimum 0
18,000
Useful lifeaccepts 0.5–15 years
5 years
Residual valueminimum 0
1,200
Years elapsedminimum 0 years
3 years

Results

Current book value
$7,920.00
Annual depreciation charge
$3,360.00
Accumulated depreciation
$10,080.00
Monthly depreciation charge
$280.00

Step by step

  1. 1Values used
  2. 2Straight-line depreciation
  3. 3Current book value= 7,920.00
  4. 4Annual depreciation charge= 3,360.00
  5. 5Accumulated depreciation= 10,080.00
  6. 6Monthly depreciation charge= 280.00

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, fees or charges 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.

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

Frequently Asked Questions

Why do hyperscalers use longer lives?

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.

Should depreciation include supporting costs?

For total cost of ownership yes: rack space, power, cooling, network ports and support contracts all belong in the comparison against cloud pricing.

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