Method
Straight-line depreciation spreads the depreciable base evenly across the useful life. It is simple and auditable, but not always the required tax or accounting method.
Example
An asset that costs 10,000, has a 1,000 salvage value and a 5-year useful life depreciates by (10,000 - 1,000) / 5 = 1,800 per year.
Common mistakes
Do not depreciate below salvage value in a straight-line estimate. Also distinguish accounting depreciation from tax depreciation, which may follow different rules.
Limitations
Tax depreciation, bonus depreciation, impairment, disposal and local accounting rules are outside this calculator.
Last reviewed: 2026-05-17