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Straight Line Depreciation Calculator

Calculate annual straight-line depreciation, monthly expense, and a full book-value schedule. GAAP and IFRS method with presets for vehicles, buildings, and machinery.

Depreciation details

Presets fill in a typical GAAP or IRS useful life. Choose "Custom" to enter your own.

Estimated value at end of useful life. Use 0 if the asset has no resale value.

Annual depreciation expense

$9,000.00

$750.00 per month

Total depreciation

$45,000

Straight-line rate

20%

Schedule length

5 years

Depreciation schedule

YearBeginning book valueDepreciation expenseEnding book value
1$50,000.00$9,000.00$41,000.00
2$41,000.00$9,000.00$32,000.00
3$32,000.00$9,000.00$23,000.00
4$23,000.00$9,000.00$14,000.00
5$14,000.00$9,000.00$5,000.00

For U.S. federal tax purposes, the IRS typically requires MACRS, which front-loads depreciation. Straight-line is the standard for GAAP and IFRS book reporting.

Straight-Line Depreciation Examples

Annual expense equals depreciable basis divided by useful life.

CostSalvage ValueUseful LifeAnnual ExpenseMonthly Expense
$5,000.00$0.005 years$1,000.00$83.33
$10,000.00$0.005 years$2,000.00$166.67
$10,000.00$1,000.003 years$3,000.00$250.00
$50,000.00$5,000.0010 years$4,500.00$375.00
$100,000.00$20,000.0020 years$4,000.00$333.33

This table illustrates book depreciation. Tax depreciation can use different rules.

Frequently Asked Questions about the Straight Line Depreciation Calculator

What is straight-line depreciation?
Straight-line depreciation spreads an asset's cost evenly over its useful life. Annual depreciation = (cost minus salvage value) / useful life. A $25,000 truck with a $5,000 salvage value and a 5-year life depreciates at $4,000 per year.
What is salvage value?
Salvage value (also called residual value) is the estimated amount you will recover when you dispose of the asset at the end of its useful life. It is the floor that book value approaches but never goes below in straight-line depreciation.
What useful life should I use?
GAAP doesn't set fixed lives; use a reasonable estimate based on expected use. Common conventions: vehicles 5 years, computers 3-5, office furniture 7, machinery 5-10, buildings 27.5 (residential) or 39 (commercial). For US tax, use MACRS instead.
How is monthly depreciation calculated?
Annual depreciation / 12. A truck with $4,000 annual depreciation expenses $333.33 each month. For mid-year acquisitions, you typically prorate the first and last year by the number of months in service.
Straight-line vs MACRS vs declining balance?
Straight-line is GAAP/IFRS, simple, and used for book reporting. MACRS is required for US federal tax and uses accelerated tables. Declining balance accelerates expense in early years, common for assets that lose value fast (electronics). The calculator focuses on straight-line; use the MACRS calculator for US tax.

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