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Straight Line Depreciation Calculator
Depreciation Schedule
Example - Cost: $11,000.00, Salvage: $1,000.00, Life: 5 years , First Year: 12 months
Period
|
Book Value
Period Start |
Depreciation
Expense |
Accumulated
Depreciation |
Book Value
Period End |
| 1 |
$11,000 |
$2,000 |
$2,000 |
$9,000 |
| 2 |
$9,000 |
$2,000 |
$4,000 |
$7,000 |
| 3 |
$7,000 |
$2,000 |
$6,000 |
$5,000 |
| 4 |
$5,000 |
$2,000 |
$8,000 |
$3,000 |
| 5 |
$3,000 |
$2,000 |
$10,000 |
$1,000 |
Straight-Line Depreciation Formula
The straight line calculation, as the name suggests, is a straight line drop in asset value. The depreciation of an asset is spread evenly across the life.
- Depreciation in Any Period = ((Cost - Salvage) / Life)
- Partial year depreciation, when the first year has M months is taken as:
- First year depreciation = (M / 12) * ((Cost - Salvage) / Life)
- Last year depreciation = ((12 - M) / 12) * ((Cost - Salvage) / Life)
- And, a life, for example, of 7 years will be depreciated across 8 years.
Straight-Line Depreciation Example
Suppose an asset for a business cost $11,000, will have a life of 5 years and a salvage value of $1,000.
- Depreciation in Any Period = (($11,000 - $1,000) / 5 years) = $10,000 / 5 years = $2,000/ year.
Microsoft® Excel® Functions Equivalent: SLN
The Excel equivalent function for Straight-Line Method is SLN(cost,salvage,life) will calculate the depreciation expense for any period. For a more accelerated depreciation method see, for example, our Double Declining Balance Method Depreciation Calculator.
(Microsoft® and Excel® are registered trademarks of Microsoft Corporation)
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