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## Straight-Line Depreciation Calculator

You can calculate straight-line depreciation of the given asset with this little gizmo in real-time. Our straight-line depreciation calculator is one of the most useful tools out there for what it does. Straight-line calculation is actually pretty easy given that the depreciation rate is constant over a period of time, thus, the name, the straight-line method.

## Overview

In the Straight-line approach, the value of an asset decreases homogeneously over each period of time until it finally approaches its salvage value. Straight line depreciation method is the most useful depreciation model for distributing the cost of an asset in time.

This straight-line model of depreciation is the simplest of all the models as the devaluation is uniformly distributed in each period of time unlike the other models in which there is certain variance in asset devaluation relative to time.

## Straight line depreciation formula

The straight-line method formula is a rather simple one and it goes like this:

`\(\mathrm{Straight line depreciation rate} = \dfrac{\mathrm{Yearly depreciation expense}}{\mathrm{Asset Cost - Salvage value}} \)`

---OR---

`\(\mathrm{Asset cost} - \dfrac{\mathrm{Final value}}{\mathrm{Useful life}}\)`

**Where:**

**Asset cost =** the buying price of the asset

**Final Value (Salvage Value) =** This is the value that an asset has at the end of its useful life

**Useful life =** This is the life of the asset in which it has peak productivity.

## How to calculate Straight-line depreciation with our calculator

Our calculator employs the straight-line depreciation equation to determine the answer. It is free to use. All that you have to do is simply put in the values required in the respective boxes in our calculator.

- Enter the asset value.
- Enter the cost value.
- Input the depreciation period.
- Press ‘Calculate’

That’s it. Calculating the input would give you the depreciable base, the devaluation expense for the first and final years as well as the schedule where you can analyze the data.