Straight-line depreciation
Spread cost minus residual value evenly over the chosen useful life.
How this works
Annual straight-line depreciation = (asset cost − residual value)/useful life in years. Residual value must not exceed cost. The depreciable amount is spread evenly over the entered life.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
The defaults give ($10,000 − $1,000)/5 = $1,800 per year. With all reset-default inputs, annual depreciation: $1,800.
- Asset cost ($)
- 10000
- Residual value ($)
- 1000
- Useful life (years)
- 5
- Annual depreciation
- $1,800
Scope and assumptions
This is a simple book-value illustration, not a tax depreciation schedule or valuation. It does not apply partial-year conventions, changes in useful life, impairment or jurisdiction-specific rules. Fractional useful-life inputs are accepted.
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