Summary

Calculate straight-line depreciation, accumulated depreciation, and book value.

Calculation details

Elapsed years are capped at useful life so book value does not fall below salvage value.

Formula

Annual depreciation = (asset cost - salvage value) / useful life.

Worked example

Worked example

Annual depreciation is $9,000; after two years book value is $32,000.

How it works

Enter asset cost, salvage, useful life, and years elapsed. Book value will not fall below salvage.

Frequently asked questions

What does the Depreciation Calculator calculate?

Elapsed years are capped at useful life so book value does not fall below salvage value.

Should I use this result for financial reporting?

Use it as an estimate and verify reporting, accounting, tax, and legal treatment with qualified professionals.

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