📉Depreciation Formulas

Straight-Line Depreciation

(Asset Cost - Salvage Value) ÷ Useful Life = Annual Depreciation

What It Means

Same expense every year. Simple and predictable.

✓Best for: Assets with equal wear over time

Asset Cost:$50,000

Salvage Value:$5,000

Useful Life:5 years

($50,000 - $5,000) ÷ 5

Annual Depreciation = $9,000

2 × (1 ÷ Useful Life) × Book Value at Beginning of Year = Depreciation

(Asset Cost - Salvage Value) ÷ Total Estimated Units × Units This Period = Depreciation

Want all 70+ formulas in one place?