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Calculate straight-line annual depreciation expenses, monthly write-offs, depreciable cost base, and year-by-year book value schedules.
| Year | Beginning Book Value | Depreciation Expense | Accumulated Dep. | Ending Book Value |
|---|---|---|---|---|
| Year 1 | $15,000.00 | -$2,600.00 | $2,600.00 | $12,400.00 |
| Year 2 | $12,400.00 | -$2,600.00 | $5,200.00 | $9,800.00 |
| Year 3 | $9,800.00 | -$2,600.00 | $7,800.00 | $7,200.00 |
| Year 4 | $7,200.00 | -$2,600.00 | $10,400.00 | $4,600.00 |
| Year 5 | $4,600.00 | -$2,600.00 | $13,000.00 | $2,000.00 |
💡 Tax Accounting Note: This schedule provides straight-line GAAP financial accounting projections. Statutory tax depreciation (such as IRS Section 179 or MACRS) may allow higher first-year write-offs.
The depreciable base represents the net total cost that will be expensed over the asset’s operational life:
For a $15,000 vehicle with a $2,000 estimated salvage value: $15,000 − $2,000 = $13,000 Depreciable Base.
Under straight-line depreciation, the depreciable base is spread equally across every year of useful life:
$13,000 ÷ 5 years = $2,600.00 Annual Expense ($216.67 per month).
At the end of Year 1, accumulated depreciation is $2,600 and the net ending book value is $12,400. By the end of Year 5, accumulated depreciation reaches $13,000 and the book value equals the $2,000 salvage baseline.
Asset Depreciation & Salvage Value Calculator. Calculate annual asset depreciation, book value schedules, and write-offs using straight-line, declining balance, and sum-of-years methods. ZechKit provides this tool completely free and online, optimized for instant, accurate computations directly inside your web browser.
A Depreciation Calculator determines the periodic reduction in recorded book value of fixed capital assets (equipment, vehicles, machinery, computers) over their useful service lives.
Depreciation Methods: 1) Straight-Line: Annual Expense = (Initial Asset Cost − Salvage Value) / Useful Life in Years. 2) Double Declining Balance (DDB): Accelerated Rate = (100% / Useful Life) × 2, applied to beginning book value. 3) Sum-of-the-Years' Digits (SYD).
Accounting vs. Tax Depreciation: Financial accounting uses straight-line depreciation for matching expenses with revenue, while tax reporting often uses accelerated MACRS schedules to front-load tax deductions.
Book Value Tracking: Knowing net book values prevents overpaying asset insurance and simplifies calculating gains or losses on equipment disposals.
What is the straight-line depreciation formula?
Annual Depreciation = (Asset Purchase Cost − Estimated Salvage Value) / Useful Life in Years.
