Money & shopping
Straight-line depreciation
Spread depreciable cost over a supplied useful life.
A clear answer. Here’s how.
Annual straight-line depreciation = (cost − residual value) / useful life. Shows year-end book values, ending at the residual value. Requires residual value no higher than cost. Uses full years and your supplied assumptions; no accounting-policy or tax allowance eligibility is determined.
See a worked example
Worked example
A fixed demonstration, separate from the values you enter above.
- Asset cost
- 10000
- Residual value
- 1000
- Useful life (whole years)
- 5
Example result
| Year | Depreciation | Year-end book value |
|---|---|---|
| 1 | 1,800 | 8,200 |
| 2 | 1,800 | 6,400 |
| 3 | 1,800 | 4,600 |
| 4 | 1,800 | 2,800 |
| 5 | 1,800 | 1,000 |