Straight-Line Depreciation Calculator
Allocate an asset’s depreciable cost evenly over its useful life and estimate book value after complete years.
Annual depreciation expenseExample$2,000
- Accumulated depreciation
- $4,000
- Book value after complete years
- $8,000
How to calculate straight-line depreciation
Annual depreciation = (cost − residual value) ÷ useful life; book value = cost − annual depreciation × elapsed years
Whole-year straight-line book depreciation only. No tax schedule, partial-year convention, impairment or revaluation is applied. Elapsed years may not exceed useful life.
Worked example
An illustrative scenario. “Reset to example” restores it in the calculator.
- Asset cost
- $12,000
- Estimated residual value
- $2,000
- Useful life
- 5 years
- Complete years elapsed
- 2 years
Annual depreciation expense: $2,000
Straight-Line Depreciation FAQ
Is this the depreciation deduction on my tax return?
Not necessarily. Tax rules can prescribe different methods, lives, limits and timing. This tool models the stated straight-line accounting assumption.