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Depreciation Calculator

Find the annual depreciation and current book value of an asset.

Inputs

Estimated value at the end of its useful life.

years
years

years
years

Saved Scenarios

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Annual Depreciation

$3,600

Current Book Value

$12,800

Spark says

How it's calculated

Formula

Annual Depreciation=Cost−SalvageUseful LifeAnnual\ Depreciation = \dfrac{Cost - Salvage}{Useful\ Life}
Cost
— Original purchase price
Salvage
— Estimated value at end of useful life
Useful\ Life
— Years the asset is expected to be used

What is the Depreciation Calculator?

Straight-line depreciation spreads an asset's loss in value evenly across its useful life, from purchase cost down to its estimated salvage value.

How to use it

  1. 1 Enter the asset's original cost.
  2. 2 Enter its estimated salvage (resale) value.
  3. 3 Enter its useful life in years.
  4. 4 Enter its current age to see today's book value.

Worked examples

$20,000 asset, $2,000 salvage, 5-year life

Depreciates $3,600/year; book value after 2 years is $12,800.

Try it

Limitations

  • •Straight-line is the simplest depreciation method — accounting standards also allow accelerated methods that front-load depreciation.

Frequently asked questions

What is salvage value?

It's the estimated resale or scrap value of an asset at the end of its useful life — the amount it depreciates down to, not to zero.