Straight Line Depreciation

Introduction to Straight Line Depreciation Calculator

The straight-line depreciation method allocates the cost of an asset equally over its useful life. The formula for straight-line depreciation is a simple calculation that takes into account the initial value, the expected salvage value at the end of its useful life, and the useful life in years. The result is the amount of depreciation that will be allocated each year.

Parameters usage:

• Initial Value = Initial value of the asset
• Salvage Value = Expected salvage value at the end of the useful life
• Useful Life = Expected useful life of the asset in years

Example valid values:

• Initial Value = 10000
• Salvage Value = 2000
• Useful Life = 10

Output:

• Depreciation = Annual depreciation amount

Data validation

The initial value and useful life should be greater than zero, and the salvage value must be non-negative and less than the initial value.

Summary

This calculator is helpful for businesses and individuals who need to allocate the cost of an asset uniformly over its useful life, for accounting and tax purposes.