Equal asset depreciation per year. The Straight-Line Depreciation Calculator takes asset cost, residual (salvage) value, useful life and returns annual depreciation plus monthly depreciation, depreciation rate, total depreciation over the life. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Financial ratios are only useful in comparison: against last year, against a competitor, or against the benchmark for your industry. Take the figures from the same set of accounts, note whether they are yearly or monthly, and read each ratio alongside the others in its family. Use the worked example below to check the maths against your own figures.
How the Straight-Line Depreciation Calculator works
Straight-line spreads the cost evenly over the years the asset is used. It is the simplest method and the default for most small-business bookkeeping.
Worked example
With the example values (asset cost of $50,000, residual (salvage) value of $5,000, useful life of 5 years), the annual depreciation is $9,000.00; monthly depreciation $750.00, depreciation rate 20%, total depreciation over the life $45,000.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is annual depreciation calculated?
annual depreciation = (cost − residual value) ÷ useful life.
Which figures do I need?
Asset cost, residual (salvage) value, useful life. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good value for this ratio?
Benchmarks differ by industry, size and business model, so compare with companies like yours and with your own history. A ratio moving in the wrong direction for several periods matters more than any single number.
