📈 Business

Straight-Line Depreciation Calculator

Calculate yearly straight-line depreciation and book value of an asset.

$
$
years

Results

Annual depreciation
$3,600.00
Monthly depreciation
$300.00
Depreciation rate
18.00%

📊 Straight-Line Depreciation Calculator chart

Book value — plotted against year.

What is the Straight-Line Depreciation Calculator?

Calculate yearly straight-line depreciation and book value of an asset. Pricing and profitability come down to a few core ratios. These business calculators help owners, freelancers and managers price products, protect margins and understand when an investment pays back.

Straight-Line Depreciation Calculator – free online business tool illustration
Straight-Line Depreciation Calculator — free, exact and private.

How to use the Straight-Line Depreciation Calculator

  1. Enter your asset cost, your salvage value, your useful life.
  2. Results update automatically as you type; you can also press Calculate.
  3. Read the output: annual depreciation, monthly depreciation, depreciation rate.
  4. Use the 📊 chart to see the result visually, then copy or share it.

Formula and method

Depreciation = (Cost − Salvage) ÷ Life

Worked example

With asset cost = $20,000, salvage value = $2,000, useful life = 5 years, the Straight-Line Depreciation Calculator returns annual depreciation: $3,600.00; monthly depreciation: $300.00; depreciation rate: 18.00%.

Tips for better results

  • Margin and markup are different: a 50% markup is only a 33.3% margin.
  • Include every variable cost (fees, shipping, payment processing) when pricing.
  • Re-run break-even numbers whenever fixed costs such as rent or salaries change.

⚠️ Business results are estimates for planning. Consult an accountant for tax and reporting decisions.

Frequently asked questions

What does the Straight-Line Depreciation Calculator do?

Calculate yearly straight-line depreciation and book value of an asset.

How is it calculated?

The Straight-Line Depreciation Calculator uses this method: Depreciation = (Cost − Salvage) ÷ Life.

Can you show an example?

With asset cost = $20,000, salvage value = $2,000, useful life = 5 years, the Straight-Line Depreciation Calculator returns annual depreciation: $3,600.00; monthly depreciation: $300.00; depreciation rate: 18.00%.

Is the Straight-Line Depreciation Calculator accurate?

It uses standard published formulas and is tested against known values, but results are estimates for guidance. Business results are estimates for planning. Consult an accountant for tax and reporting decisions.

Is this tool free and private?

Yes — the Straight-Line Depreciation Calculator is completely free with no sign-up, and it runs entirely in your browser, so the values you enter are never uploaded to our servers.

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