Straight-line depreciation calculator
Enter asset cost, residual value and useful life to calculate depreciation and a year-by-year carrying amount schedule.
- Annual depreciation
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- Monthly depreciation
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- Depreciation of the first year
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Straight-line method
Annual depreciation = (asset cost − residual value) ÷ useful life in years. This calculator divides the annual amount by 12 and uses the selected start month for the first year.
Choosing useful life
Enter the expected period for which your business will use the asset and its estimated residual value. These are estimates, not fixed periods prescribed by this calculator. Accounting depreciation and tax deductions may differ.
Depreciation entry
In this simplified model, debit depreciation expense and credit accumulated depreciation. Carrying amount = asset cost − accumulated depreciation.
Frequently asked questions
What happens when an asset is sold?
Compare net disposal proceeds with the asset’s carrying amount at the disposal date. A positive difference is a gain; a negative difference is a loss. This calculator estimates depreciation only; it does not record a disposal or post journal entries.