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Everyday Finance

Depreciation Calculator

Estimate straight-line annual depreciation, accumulated depreciation, and book value.

Best for: Estimate straight-line depreciation, accumulated depreciation, and remaining book value.

Your assumptions

Calculate your estimate

Your result

Depreciation estimate

Current book value
$32,000.00
Annual straight-line depreciation
$9,000.00
Accumulated depreciation
$18,000.00

How to use this depreciation calculator

Use this depreciation calculator to create a straight-line book-value estimate from cost, salvage value, useful life, and elapsed time. Accounting, tax, and market value can follow different rules, so treat the result as a planning schedule rather than a tax filing calculation or appraisal.

  1. 1

    Set the depreciable basis

    Enter asset cost and the expected salvage value at the end of its useful life.

  2. 2

    Choose useful life and age

    Use a defensible useful life and the number of years the asset has been in service.

  3. 3

    Separate book and market value

    Compare the schedule with actual resale evidence instead of assuming accounting value equals market value.

Worked planning example

Example: estimate equipment book value

Set up

Enter the installed asset cost, expected residual value, useful life, and current age.

Compare

Run a second case with a shorter useful life or lower salvage value to see how annual depreciation changes.

Takeaway

Useful-life and residual-value assumptions directly shape the expense and remaining book value.

Do not confuse depreciation with valuation

Straight-line depreciation allocates cost evenly; it does not predict the price a buyer would pay.

  • Tax depreciation may use a different method and recovery period.
  • Impairment, repairs, and upgrades can change accounting treatment.
  • Market value should be supported by comparable sales or an appraisal.

Calculation methodology and assumptions

For this depreciation estimate, Silvia uses asset cost, estimated salvage value, useful life, years elapsed. Estimate straight-line annual depreciation, accumulated depreciation, and book value. Results are estimates, not quotes, tax advice, or investment recommendations.

Frequently asked questions

What is the straight-line depreciation formula?

Annual depreciation equals asset cost minus salvage value, divided by useful life. Accumulated depreciation is limited so book value does not fall below salvage value in this model.

Is book value the same as market value?

No. Book value is an accounting amount based on a depreciation method. Market value reflects what a buyer may pay and can be higher or lower.

Can I use this for tax depreciation?

Not by itself. Tax systems can require specific classes, conventions, bonus rules, or accelerated methods. Use current tax guidance or a qualified tax professional.

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