Free online calculator
Depreciation Calculator
Estimate asset value over time using straight-line depreciation assumptions.
Quick Answer
How It Works
Annual depreciation = (asset cost - salvage value) / useful life in years.
- Enter asset cost, salvage value, and useful life.
- Review annual depreciation amount.
- Check remaining value after selected years.
Examples use USD-style formatting. Tax rates, fees, and legal rules vary by country and change over time — treat results as estimates and confirm important numbers with a qualified professional.
Interactive Calculator
Annual depreciation: 3000.00
Book value after elapsed years: 14000.00
Example Use Case
A 20,000 asset with 5,000 salvage over 5 years depreciates by 3,000 per year.
Detailed Guide
Depreciation estimates help businesses align asset planning with accounting visibility.
Straight-line methods are simple and transparent but may differ from tax treatment requirements.
Using consistent asset assumptions improves comparability across budgeting periods.
Treat this as planning support and reconcile with jurisdiction-specific accounting rules.
Assumptions and Limits
Uses straight-line method only and does not include tax-specific depreciation schedules.
Common Mistakes to Avoid
- Setting salvage value higher than initial cost.
- Using tax depreciation and accounting depreciation interchangeably.
- Ignoring partial-year treatment.
FAQ
Can I use this calculator for free?
Yes. This tool is free and designed for practical day-to-day decisions.
Why might results differ from another website?
Differences usually come from rounding rules, assumptions, or region-specific formulas.
Is this suitable for legal or financial advice?
No. Treat outputs as guidance and validate with qualified professionals for final decisions.
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How we choose formulas and check results: Methodology · Last reviewed 2026-07-25