Finance
Straight-Line Depreciation
Annual depreciation expense.
Formula
Formula
D = cost − salvagelife
Variables
| Symbol | Definition | Type & range | Units | Role |
|---|---|---|---|---|
| cost | asset cost | computed result | — | result |
| salvage | salvage value | computed result | — | result |
| life | useful life (yr) | computed result | — | result |
Try it yourself
Interactive calculator
Worked examples
Example 1
Givencost = 10000, salvage = 2000, life (years) = 5
Result1600
Example 2
Givencost = 30000, salvage = 0, life (years) = 10
Result3000