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| Straight – Line Depreciation Formula: Yearly Depreciation = (Original Cost - Salvage Value) / Useful Life | |||
Straight – Line Depreciation Definition Are you trying to figure out how your assets depreciate over time? Do you usually try to work out mathematical computations by hand? Are you frustrated by the process or feel confused about the straight line depreciation formula? If you find yourself identifying with any of these questions then you certainly are not alone! Straight line depreciation requires a intricate formula that is best calculated through an accurate calculator. Calculator Pro’s Straight Line Depreciation Calculator can get you the results you need quickly and accurately! Our free, online calculator is designed to get the job done in just seconds. All you have to do is provide the data, and Calculator Pro takes care of the rest for you! Follow these quick, easy steps to learn how to use our free, online calculator. You won’t be disappointed with the results! Here is how you can get started! What is Straight Line Depreciation? The straight line depreciation calculation is exactly what its name suggests it is: It measures the straight line decrease in your assets’ values. The drop in your assets’ value is measured across your life in an even way. What is the Formula for Straight Line Depreciation? The formula for straight line depreciation is as follows: Depreciation in Any Period = ((Cost – Salvage) / Life) You also can calculate partial year depreciation as follows: First year depreciation = (M / 12)*(Cost – Salvage) / Life) In this case, “M” represents the months that have already passed. Collecting Your Data To use Calculator Pro’s Straight Line Depreciation calculator, you first need to collect some data. You will need the following:
Example #1 Input these numbers into the online calculator, and then click on the Calculate button. Here is an example of what that might look like:
Calculator Pro’s Straight Line Depreciation Calculator will return the following results:
Let us try another example, as follows, for a car:
Calculator Pro’s Straight Line Depreciation Calculator will return the following results:
By inputting a variety of data for each of the major assets you own, you will be better able to think about what is a better investment for your money. A car is going to depreciate as soon as you drive it off the lot, whereas a house might not because you can improve its quality and value. These are important elements to think about as you are thinking about major yearly purchases. How Can I Access the Calculator? That is a great question. You can access the Straight Line Depreciation Calculator anywhere you can get online. Our free, online calculator is available anywhere in the world and exactly when you need it. In fact, you can access the Straight Line Depreciation Calculator even on your phone, if your cell phone has an Internet media package. Share our free, online calculator with friends who are interested in learning more about how their assets depreciate by sharing a link to our website with them. They can embed our calculator into their blog. How to Calculate Straight – Line Depreciation Let's be honest - sometimes the best straight – line depreciation calculator is the one that is easy to use and doesn't require us to even know what the straight – line depreciation formula is in the first place! But if you want to know the exact formula for calculating straight – line depreciation then please check out the "Formula" box above. |