Use this financial calculation for a transparent scenario, ratio, valuation, pricing, or cash-flow estimate when all amounts, dates, rates, and compounding conventions are defined consistently.

Cost

Required number input.

Salvage value

Required number input.

Useful life (years)

Useful life in years; must be greater than zero.

Calculate the annual straight-line depreciation expense from cost, salvage value, and useful life. The tool evaluates the supplied inputs together and returns the named outputs below; it does not infer omitted operating conditions or change the units shown.^[1]

Annual depreciation

The resulting annual depreciation returned as a number.

• Straight-line depreciation is an accounting allocation based on cost, residual value, and useful life. Tax schedules, impairment, component accounting, disposal, maintenance, and economic market value can differ.
• Use finite inputs in the displayed units and preserve more precision than the final presentation requires. Independently verify safety-critical, financial, compliance, or production decisions.

Test multiple scenarios, reconcile rates and cash-flow dates, retain full precision, and verify contractual, tax, market, and accounting inputs with current primary documents or qualified advice.

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