Result
Depreciation per year
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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
Straight-line depreciation per year = (original cost − salvage value) ÷ useful life. This is the simplest method: the same amount is written off in equal parts every year until the end of the term, and the depreciation rate (as % of the depreciable base) = 100% ÷ useful life in years.
The asset's book value at any point = original cost − accumulated depreciation. Since write-offs are equal each year, the book value chart is a straight line from the original cost down to the salvage value.
The straight-line method suits assets that wear out and lose usefulness evenly year to year. If an asset loses value faster early on (e.g. a vehicle or equipment with high obsolescence), accelerated depreciation reflects reality more accurately — see the separate calculator.