# Straight Line Depreciation Calculator

## Calculator Use

Use this calculator to calculate the simple straight line depreciation of assets.

## Inputs

- Asset Cost
- the original value of your asset or the depreciable cost; the necessary amount expended to get an asset ready for its intended use
- Salvage Value
- the value of the asset at the end of its useful life; also known as residual value or scrap value
- Useful Life
- the expected time that the asset will be productive for its expected purpose
- Placed in Service
- select the month and enter the year the asset started being used for its intended purpose
- Year
- enter 1 or 4 digits; enter a four digit year to use your actual years
**OR**enter a 1 to list years using digits 1 through the last year - Convention
- choose Full-Month, Mid-Month, Mid-Year or Mid-Quarter Convention; if you don't know, keep it at the common Full-Month

## Sample Full Depreciation Schedule

Cost: $11,000.00, Salvage: $1,000.00

Life: 5 years, Convention: Full-Month

First Year: 8 months

Year Start

Expense

Depreciation

Year End

## 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 12 month 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)

**Cite this content, page or calculator as:**

Furey, Edward "Straight Line Depreciation Calculator"; from *https://www.calculatorsoup.com* - Online Calculator Resource.