Blog
Finance

Equipment depreciation calculator

Enter the equipment's purchase price, delivery and installation cost, salvage value, and useful life. The calculator works out the annual depreciation.

Costs that accounting rules capitalize into the equipment's original cost rather than expensing separately

Result

Depreciation per year

Depreciable base

Your inputs are stored in this browser, so everything is still here next time. Nothing is sent to a server.

This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Depreciable base = purchase price + delivery and installation − salvage value. Annual depreciation = depreciable base ÷ useful life. Same straight-line method as the general straight-line depreciation calculator, but explicitly including installation costs, which for equipment often make up a significant share of the original cost.

Under standard accounting rules, the depreciable cost usually includes every expense needed to bring the equipment to a usable state — not just the supplier's invoice price, but also delivery, installation and commissioning work.

If there's no installation cost, or it's already folded into the purchase price, enter 0 — the calculation reduces to ordinary straight-line depreciation. For the declining balance method instead of straight-line, use the separate accelerated depreciation calculator.

Other calculators

All calculators