Straight Line Depreciation Calculator

Depreciation is a business expense, it represents the reduction in value of a long term asset due to wear and tear.

There are various methods used to calculate the depreciation expense of which the simplest and most generally used is the straight line depreciation method. This calculator will perform the straight line depreciation calculation for you, and work out the annual depreciation expense and the implied depreciation rate.

The calculation is carried out using the straight line depreciation formula which takes the cost of the asset less any expected salvage (residual) value and divides this by the anticipated useful life of the asset. The formula for straight line depreciation is given as follows:

Straight Line Depreciation = (Cost – Salvage value) / Useful life

Full details of how the straight line depreciation method is used can be found in our depreciation tutorials.

straight line depreciation calculator v 1.0
Straight Line Depreciation Calculator Preview
Using the Straight Line Depreciation Calculator

The Excel straight line depreciation calculator, available for download below, is used to compute straight line depreciation by entering details relating to the asset. The calculator is used as follows:

  1. Enter the cost of the asset. The cost of the asset can be found in the long term asset account, asset register, or on the original source document (invoice) for the asset
  2. Enter the salvage value. The salvage or residual value is the amount the asset is expected to be worth at the end of its useful life. The straight line depreciation calculator works out the cost which is subject to depreciation, known as the depreciable cost.
  3. Enter the useful life. The useful life is the anticipated time in years which the asset is expected to be useful to the business. The straight line depreciation calculator works out the annual depreciation expense for the asset and the implied depreciation rate.
Straight Line Depreciation Calculator Download

The straight line depreciation spreadsheet is available for download in Excel format by following the link below.

Notes and major health warnings
Users use this straight line depreciation calculator at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a straight line method of depreciation calculator that you might use when considering how to calculate straight line depreciation. It is purely illustrative. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in this straight line depreciation template, please let us know and we will try to fix it.
Straight Line Depreciation Calculator November 6th, 2016Team

You May Also Like

Related pages

common size income statement analysisnpv formula excel examplejournal entries for depreciationtrade receivables turnover ratiosingle step or multi step income statementlcm reservefuture value of an annuity formula calculatoraccrued salaries journal entryirrecoverable debthow to calculate depletion expenseasset turnover equationperpetuity npvfvf tableaccounting debits creditsincome and expenditure account of non profit organisationadjusting entry for notes payableledger entry examplesperiodic inventory journal entriesjob costing spreadsheetwhy do you prepare a trial balancepayback calculationending inventory calculationpaid creditor on account journal entrypmt excel formuladeferred tax liability journal entrycontinuous interest rate calculatorledger sheet templateexcel annuity payout calculatorinvestor ratios definitionhow to record petty cash expensessales allowance journal entryintercompany receivables and payablesprepayments and accrued incomepremium bonds effective interest ratebalance sheet debtorsjournal entry of prepaid expensesimprest balanceaccounting for obsolete inventorybonds payable calculatorinsurance paid in advance journal entrybookkeeping principlesjob order costing formulaperpituity definitioncontra revenuepayback equationquick ratio acid test ratiowhere is unearned revenue recordedhow to calculate operating profit margin ratiodefine bills receivableretained earning income statementcorrecting entries accountinghow to prepare an amortization scheduletrade discount calculationhow to calculate stock turnover dayssample statement of stockholders equityvolume variance definitionpv growing perpetuitysales accrualspresent value formula perpetuitypresent value of annuity excelcash count spreadsheetfinance lease accounting journal entrieshow to convert margin to markupthe basic accounting equation isa note receivable or promissory noteperpetual inventory record exampleoffice supplies adjusting entryaccounting basics balance sheetfactoring flow chartvoucher booklet templatewhat is a accounting equationbills payable formataccounting adjusting entries for dummiescontribution margin analysis exampleexample of subsidiary ledger