## 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

## Common Mistakes

- 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.