Accounting · Free tool
Straight-Line Depreciation Calculator
When a business buys equipment, a vehicle, or a fit-out, the cost is spread over the years the asset is used. This straight-line depreciation calculator takes the cost, the expected salvage value, and the useful life in years, and returns the annual and monthly charge. It is built for bookkeepers, accountants, and owners preparing monthly accounts.
- OutputAnnual and monthly depreciation
- No sign-up
- Copy or print the result
- How it works ↓
Your entries stay in this browser. Use Fill example to see a finished page first.
What this accounting tool gives you
Three figures come back: annual depreciation, monthly depreciation, and the depreciable amount. The monthly figure is the one to use for a recurring journal entry, and the annual figure fits a fixed asset register or a budget line. It is a book calculation, not a tax schedule.
What you enter
- Currency: USD by default, or EUR or GBP (only changes how amounts are formatted)
- Cost: what the asset cost, zero or more
- Salvage value: what you expect it to be worth at the end of its life, no higher than cost
- Useful life (years): the number of years you will use the asset, at least 1
Worked example
Using the tool's example, an asset costs $15,000, has a $3,000 salvage value, and a useful life of 4 years. The depreciable amount is $12,000. Spread evenly, that is $3,000 of depreciation a year and $250 a month. After four years the book value falls from $15,000 to the $3,000 salvage value.
How is straight-line depreciation calculated?
Depreciable amount = cost − salvage value. Annual depreciation = depreciable amount ÷ useful life in years. Monthly depreciation = annual depreciation ÷ 12. Each figure is rounded to the cent.
The same amount is charged every year, which is what straight-line means. Salvage value cannot be higher than cost, and useful life must be at least one year. The tool does not apply tax depreciation methods, bonus depreciation, or partial first-year conventions, so treat it as an accounting aid rather than tax guidance.
Tips before you use the result
- Use the monthly figure for your recurring depreciation journal so each period carries the same charge.
- If you start depreciating mid-year, the first year's charge is usually prorated; this tool shows the full-year amount, so adjust the first year yourself.
- Tax depreciation rules often differ from book depreciation. Check with your tax advisor before using these figures on a return.
- Revisit the useful life and salvage estimate if the asset's condition changes; a new estimate changes future charges.
Frequently asked questions
What is the straight-line depreciation formula?
Subtract the salvage value from the asset's cost, then divide by the useful life in years. That gives the same depreciation charge for every year. For a $15,000 asset with a $3,000 salvage value and a 4-year life, the charge is $12,000 ÷ 4 = $3,000 a year, or $250 a month.
What is salvage value in depreciation?
Salvage value, also called residual value, is what you expect the asset to be worth when you stop using it. It is not depreciated, so only the cost above it is spread over the useful life. If you expect the asset to be worth nothing, enter zero.
Can I use this for tax depreciation?
Not directly. The calculator produces a plain straight-line book schedule. Tax rules in many countries use different methods, lives, and first-year conventions, and the tool does not apply any of them. Use the result for management accounts and confirm tax treatment with a qualified advisor.
Where does the depreciation calculator store my asset details?
Only in your browser. The cost, salvage value, and useful life are kept in local storage on the device, and there is no sign-up or account. You can reload the page and pick up where you left off, or use Clear to reset.
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Results depend on the figures you enter; check them against your own records before you rely on them. Last updated: October 2026 · Kurums editorial team.