Answers the Question
If an item loses the same amount of value every year, how much will it be worth?
Calculator for Straight Line Depreciation
What Is the Straight Line Depreciation?
A full description can be found in the guide to depreciation
Why Is it Important?
- This is the simplest method to depreciate an item.
Formula(s) to Calculate Straight Line Depreciation
- DEPECIATION = (START VALUE - SALVAGE VALUE) / YEARS OF LIFE
- Forgetting to use a salvage value. Many items can be sold after useful life for scrap or other purposes.
- Using this method when larger amounts of depreciation in the item's life cycle would be preferable.
- Many calculators break when usable lifetime is a fraction.