Straight Line Depreciation Calculator

How to Use the Calculator

1. Enter the initial cost of the asset in the "Asset Cost" field.
2. Enter the estimated salvage value of the asset in the "Salvage Value" field.
3. Enter the useful life of the asset in years in the "Useful Life" field.
4. Click the "Calculate" button to compute the annual depreciation expense.
5. The result will be displayed in the "Annual Depreciation Expense" field.

Understanding Straight Line Depreciation

Straight Line Depreciation is a method of allocating the cost of a tangible asset over its useful life. It assumes an even rate of depreciation each year. The formula for calculating the annual depreciation expense is:

Annual Depreciation Expense = (Asset Cost - Salvage Value) / Useful Life

This method is simple and commonly used because it provides a consistent expense amount each year, making financial reporting easier to understand.