Business & Accounting

Depreciation Calculator

Calculate straight-line depreciation, annual expense, accumulated depreciation and book value after a selected year.

Default example13,000.00 book value20,000.00 depreciable base ÷ 5 years = 4,000.00 annual depreciation. After year 3: accumulated 12,000.00.

Calculator

Working calculator

Asset cost ($)Salvage value ($)Useful life (years)Year to inspect

Live result13,000.00 book value20,000.00 depreciable base ÷ 5 years = 4,000.00 annual depreciation. After year 3: accumulated 12,000.00.

Formula used

Depreciable base = asset cost − salvage value. Annual depreciation = depreciable base ÷ useful life. Book value after year y = asset cost − annual depreciation × y, not below salvage value.

This is the method behind the answer, so the result can be checked rather than simply trusted.

Visual grid

This number is one point on a larger pattern

Depreciation is not just a final answer. It is a step on a line: before and after, input and output, assumption and result.

Micro-timehours, minutes, shiftsHuman scaledays, weeks, projectsMacro-timemonths, years, calendars

InputFormulaResult

13,000.00 book value

CalculationTime keeps the path visible: the input, the method and the final number belong together.

13,000.00 book value20,000.00 depreciable base ÷ 5 years = 4,000.00 annual depreciation. After year 3: accumulated 12,000.00.

Inputs

Asset cost: 25,000 $
Salvage value: 5,000 $
Useful life: 5 years
Year to inspect: 3

Method

Depreciable base = asset cost − salvage value. Annual depreciation = depreciable base ÷ useful life. Book value after year y = asset cost − annual depreciation × y, not below salvage value.

A $25,000 asset with $5,000 salvage value and a 5-year useful life depreciates by ($25,000 − $5,000) ÷ 5 = $4,000 per year.

Assumptions

Straight-line depreciation only.
Tax rules, bonus depreciation, diminishing value and local accounting policy are not included.
Year number is capped at useful life for book-value display.

Notes

Use this space on the printed report for client, supplier, classroom, job-location, measurement, quote or approval notes.

Explain it like I'm 12

The depreciation calculator subtracts salvage value from asset cost, spreads that depreciable base evenly across useful life, and shows book value after the selected year.

Source references

IRS Publication 946 — U.S. depreciation method reference; local tax rules vary

Formula

Depreciable base = asset cost − salvage value. Annual depreciation = depreciable base ÷ useful life. Book value after year y = asset cost − annual depreciation × y, not below salvage value.

Worked example

A $25,000 asset with $5,000 salvage value and a 5-year useful life depreciates by ($25,000 − $5,000) ÷ 5 = $4,000 per year.

Professional note

Master’s Tip: keep the depreciation method, useful life, salvage assumption and start date beside the result so the book value can be audited later.

Regional and unit assumptions

Straight-line accounting estimate. Confirm tax depreciation with local rules and a qualified adviser.

Assumptions and limitations

Straight-line depreciation only.
Tax rules, bonus depreciation, diminishing value and local accounting policy are not included.
Year number is capped at useful life for book-value display.

Methodology & Accuracy

How this calculator is checked

CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.

Formula used

Depreciable base = asset cost − salvage value. Annual depreciation = depreciable base ÷ useful life. Book value after year y = asset cost − annual depreciation × y, not below salvage value.

Standard or basis

Straight-line accounting estimate. Confirm tax depreciation with local rules and a qualified adviser.

Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.

Master's Tip

Master’s Tip: keep the depreciation method, useful life, salvage assumption and start date beside the result so the book value can be audited later.

Related calculators

Questions

What is straight-line depreciation?

It spreads the depreciable asset cost evenly over its useful life.

Is this a tax depreciation calculator?

No. It is an accounting estimate. Tax schedules and accelerated methods need local rules.