1. Default equipment
Cost $50,000.00, salvage $5,000.00, 5 years and 100% business use give depreciable amount $45,000.00, annual depreciation $9,000.00 and monthly depreciation $750.00.
Equipment Depreciation (Straight Line) Calculator
Greater than zero; maximum 1 trillion.
Zero to equipment cost.
Whole years from 1 to 100.
Greater than zero to 100%; scales both cost and salvage.
Monthly allocation starts in the placed month. Leave blank for numbered periods.
Formatting only; no FX conversion. All currencies display two decimals.
Estimated straight-line depreciation
$9,000.00 / year$750.00 / month
- Depreciable amount
- $45,000.00
- Useful life
- 5 years
- Ending scheduled book value
- $5,000.00
- Full asset cost
- $50,000.00
- Business-use cost basis
- $50,000.00
- Business-use salvage basis
- $5,000.00
Straight-line book depreciation does not determine market value.
Tax note: This calculator estimates straight-line depreciation. Actual tax depreciation or deductions may differ based on jurisdiction, asset type, business-use rules, tax year, conventions, elections, and other requirements.
Scheduled Book Value
Business-use basis $50,000.00 declines to business-use salvage $5,000.00. Annual points come from the monthly schedule; the full table below is the text equivalent.
Annual depreciation schedule
Numbered asset periods; no calendar date was supplied.
Calculations retain full precision. Display rows use differences between rounded book-value boundaries, distributing cent adjustments across periods so displayed rows reconcile and stop at displayed salvage. Summary rates are rounded independently.
| Period | Months | Beginning Book Value | Depreciation | Accumulated Depreciation | Ending Book Value |
|---|---|---|---|---|---|
| Year 1 | 12 | $50,000.00 | $9,000.00 | $9,000.00 | $41,000.00 |
| Year 2 | 12 | $41,000.00 | $9,000.00 | $18,000.00 | $32,000.00 |
| Year 3 | 12 | $32,000.00 | $9,000.00 | $27,000.00 | $23,000.00 |
| Year 4 | 12 | $23,000.00 | $9,000.00 | $36,000.00 | $14,000.00 |
| Year 5 | 12 | $14,000.00 | $9,000.00 | $45,000.00 | $5,000.00 |
Inputs and assumptions
Equipment cost $50,000.00; salvage $5,000.00; useful life 5 years; business use 100%; placed-in-service date Not supplied; currency USD; schedule annual, asset years. Currency formatting changes labels only.
Depreciable amount = (cost − salvage) × business use / 100. Annual depreciation = depreciable amount ÷ useful life. Monthly depreciation = annual depreciation ÷ 12. Cost, salvage, life and business use stay constant; no impairment, disposal, additions, revaluation, tax elections or deductions are modeled.
Tax note: This calculator estimates straight-line depreciation. Actual tax depreciation or deductions may differ based on jurisdiction, asset type, business-use rules, tax year, conventions, elections, and other requirements.
Straight-line book depreciation does not determine market value.
Sources
How to use
Calculate annual depreciation and generate a clear depreciation schedule.
Enter equipment cost, salvage value, whole useful-life years and business-use percentage. Optionally enter a placed-in-service date. Choose currency formatting and Annual or Monthly; with a date, choose Asset years or Calendar years. Results update immediately. Review the business-use basis, schedule and chart, then copy the summary or use Print / Save PDF for the full selected schedule. Reset restores the 50,000 cost, 5,000 salvage, five-year, 100% use, USD, Annual defaults with no date. Invalid inputs hide all calculated outputs.
How straight-line depreciation works
Straight-line depreciation allocates the depreciable amount evenly over a constant estimated useful life. Annual depreciation = (equipment cost − salvage value) × business use / 100 ÷ useful life in years. Cost, salvage, useful life and business use remain unchanged in this planning model.
Depreciable amount
Depreciable amount = (cost − salvage) × business use / 100. Business-use cost basis = cost × business use / 100; business-use salvage basis = salvage × business use / 100. Subtracting these scaled amounts gives the same depreciable amount.
Annual depreciation
Annual depreciation = business-use depreciable amount ÷ useful life. This rate applies to each complete asset year. Calendar-year totals instead add the monthly allocations that fall within that calendar year.
Monthly depreciation
Monthly depreciation = annual depreciation ÷ 12, using unrounded annual depreciation. Each asset year consists of 12 monthly periods; the selected table can show every month.
Salvage value
Salvage is your assumed residual amount at the end of useful life. Enter an amount from zero to equipment cost. Equal cost and salvage produce zero depreciation. Both amounts are scaled by business use before scheduling.
Useful life
Useful life is the estimated number of years this equipment serves the business, not a prescribed tax recovery period. This version accepts whole years from 1 through 100 and generates 12 monthly periods per year.
For a separate replacement-budget question, compare a replacement cash reserve’s purchasing power over a horizon you choose. This does not forecast equipment prices or change the fixed depreciation schedule, salvage assumption or tax treatment.
Business-use percentage
Business use must be greater than zero and no more than 100%. A constant percentage scales both equipment cost and salvage. For mixed use, the table represents the business-use share only, not the full asset’s scheduled book value.
Depreciation schedule
One monthly schedule supplies the monthly table, grouped asset-year and calendar-year tables, dated book value and annual chart points. Beginning book value minus period depreciation equals ending book value. Accumulated depreciation is the difference between the initial business-use cost basis and ending scheduled book value.
Scheduled book value
Scheduled book value = business-use cost basis − accumulated scheduled depreciation, with business-use salvage as the minimum. This accounting estimate excludes impairments, additions, disposals and changed estimates. It is not an appraisal.
Placed-in-service date
An optional placed-in-service date labels monthly periods. Calendar years sum months from the placed month through December in the first year. Asset years group each consecutive 12-month block, even across calendar years. The day within the placed month does not prorate allocation. The dated book value includes that month’s allocation once the actual placed date has arrived, including the current month. Before that date it says Not yet placed in service; after the schedule ends it stays at salvage.
Calendar schedule using monthly straight-line allocation. A full monthly allocation begins in the placed-in-service month; the day does not prorate the month. As-of values include the current month once the placed date is reached. This is calendar allocation, not a tax convention.
Book depreciation vs tax depreciation
Book depreciation allocates an entered depreciable amount for accounting/planning. A tax deduction cannot be inferred from this output. Tax rules can use different methods, recovery periods, conventions and elections. Consult the IRS source for US context and applicable professional guidance for your jurisdiction.
Tax note: This calculator estimates straight-line depreciation. Actual tax depreciation or deductions may differ based on jurisdiction, asset type, business-use rules, tax year, conventions, elections, and other requirements.
Straight-line book depreciation does not determine market value.
Worked examples
2. Complete five-year schedule
| Year | Beginning Book Value | Depreciation | Accumulated Depreciation | Ending Book Value |
|---|---|---|---|---|
| Year 1 | $50,000.00 | $9,000.00 | $9,000.00 | $41,000.00 |
| Year 2 | $41,000.00 | $9,000.00 | $18,000.00 | $32,000.00 |
| Year 3 | $32,000.00 | $9,000.00 | $27,000.00 | $23,000.00 |
| Year 4 | $23,000.00 | $9,000.00 | $36,000.00 | $14,000.00 |
| Year 5 | $14,000.00 | $9,000.00 | $45,000.00 | $5,000.00 |
3. Eighty percent business use
Cost $50,000.00 and salvage $5,000.00 become business-use cost basis $40,000.00 and salvage basis $4,000.00. Depreciable amount is $36,000.00; annual depreciation is $7,200.00; monthly depreciation is $600.00.
4. Zero salvage
Cost $30,000.00, zero salvage and 5 years at 100% business use give annual depreciation $6,000.00 and ending scheduled book value $0.00.
5. July placement and calendar allocation
Placed July 15, 2026: the first calendar year contains 6 monthly periods and $4,500.00 depreciation. Middle calendar years contain 12 periods. The last calendar year contains 6 periods and $4,500.00 depreciation. All 60 months total $45,000.00. This is calendar allocation, not a tax convention.
Assumptions and limitations
Cost is finite, greater than zero and at most 1 trillion; salvage is zero through cost. Useful life is a whole 1–100 years and business use is greater than zero through 100%. Numeric text is limited to 32 characters and supports decimal comma or dot. Dates must be valid from 1900 through 9899. Currency changes formatting only; two decimals are shown for all currencies. No assets are saved, input values sent to a server or placed in URLs. Calculations use a constant business-use share and unchanged estimates.
Calculations retain full precision. Display rows use differences between rounded book-value boundaries, distributing cent adjustments across periods so displayed rows reconcile and stop at displayed salvage. Summary rates are rounded independently.
Calendar schedule using monthly straight-line allocation. A full monthly allocation begins in the placed-in-service month; the day does not prorate the month. As-of values include the current month once the placed date is reached. This is calendar allocation, not a tax convention.
Tax note: This calculator estimates straight-line depreciation. Actual tax depreciation or deductions may differ based on jurisdiction, asset type, business-use rules, tax year, conventions, elections, and other requirements.
Straight-line book depreciation does not determine market value.
FAQ
How do I calculate straight-line depreciation?
Subtract assumed salvage from equipment cost, scale the difference by business-use percentage, then divide by useful life in years.
What is depreciable amount?
It is the entered cost less salvage, scaled by business use, that this model allocates over useful life.
How do I calculate annual depreciation?
Divide business-use depreciable amount by useful life in years.
How do I calculate monthly depreciation?
Divide unrounded annual depreciation by 12. Monthly schedule rows reconcile displayed cent rounding.
What is salvage value?
The assumed residual amount at the end of useful life. It must be between zero and cost.
What is useful life?
The estimated service life in this model, entered as a whole number from 1 to 100 years.
How does business-use percentage affect depreciation?
It scales both cost and salvage. At 80% use, the schedule starts at 80% of cost and stops at 80% of salvage.
What is book value?
Scheduled book value is cost basis minus accumulated scheduled depreciation, subject to the modeled salvage floor. It is not an appraisal.
How does a placed-in-service date affect the schedule?
A full monthly allocation starts in that month. Calendar years aggregate the relevant months; the day does not prorate allocation. This is a calculator calendar convention.
Is straight-line book depreciation the same as a tax deduction?
No. Actual tax depreciation or deductions depend on applicable rules and may differ from this accounting estimate.
Sources
Reviewed October 4, 2026. ACCA provides accounting definitions and the straight-line formula; IRS Publication 946 supplies US tax context. The calculator’s monthly calendar allocation is its own disclosed planning convention.