Business & Accounting

Depreciation Calculator

Business & Accounting

Depreciation Calculator

Asset setup first

Instant book-value answer13,000.00 book value4,000.00 annual depreciation after spreading 20,000.00 over 5 years.

4,000.00Annual depreciation12,000.00Accumulated20,000.00Depreciable baseYear 3Inspected year

Formula: (asset cost - salvage value) / useful life. This straight-line estimate excludes tax schedules, bonus depreciation and local accounting policy.

Straight-line onlyTax rules excludedBook value floored at salvage

Asset cost ($)Salvage value ($)

Useful life and inspected year

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.

Live math canvas

Your numbers, formula and explanation together

Depreciation Calculator: 13,000.00 book value. 20,000.00 depreciable base ÷ 5 years = 4,000.00 annual depreciation. After year 3: accumulated 12,000.00.

Formula applied

The exact method behind this answer

CalculationTime keeps the method visible so the number can be checked instead of blindly trusted.

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.

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

Your live breakdown

Current inputs in the calculation

These values come from the controls above and update when the calculator changes.

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

Resulting answer

13,000.00 book value

20,000.00 depreciable base ÷ 5 years = 4,000.00 annual depreciation. After year 3: accumulated 12,000.00.

Answer: 13,000.00 book value
Live support: 20,000.00 depreciable base ÷ 5 years = 4,000.00 annual depreciation. After year 3: accumulated 12,000.00.

Assumptions used

What this answer assumes

The visible assumptions define the boundary of this calculation.

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.

Master’s Tip

How to use the result well

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.

Printable record

What belongs in the saved calculation

Save the inputs, result, formula, assumptions, page URL and date together so the calculation can be reviewed later.

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

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.