Formula and calculation method
Straight-line annual depreciation = (cost − salvage value) / useful life.
Use consistent units for all comparable inputs. The displayed result is rounded; arithmetic is performed with the full available numeric precision. Check your source measurements before relying on the result.
How to use depreciation calculator
- Set Principal / amount. The example below uses 100000.
- Set Salvage value. The example below uses 10000.
- Set Useful life (years). The example below uses 10.
- Select Calculate to update the result. Reset restores the illustrated inputs. Copy, print or download your own result if you need a record.
Worked example
Example inputs
- Principal / amount
- 100000
- Salvage value
- 10000
- Useful life (years)
- 10
- Annual depreciation
- 9000
Factors affecting your result
Use consistent units for all comparable inputs. The displayed result is rounded; arithmetic is performed with the full available numeric precision. Check your source measurements before relying on the result.
Changing principal / amount changes the scenario being evaluated. Adjust one input at a time when comparing results, keep a copy of the assumptions, and compare values using the same unit and period. A precise arithmetic result does not make an uncertain assumption precise.
Frequently asked questions
How does the depreciation calculator work?
Straight-line annual depreciation = (cost − salvage value) / useful life.
What inputs does Depreciation Calculator need?
Enter principal / amount, salvage value, useful life (years). Choose values that correspond to the same situation and measurement convention.
How should I interpret the depreciation calculator result?
Use consistent units for all comparable inputs. The displayed result is rounded; arithmetic is performed with the full available numeric precision. Check your source measurements before relying on the result.
Are my depreciation calculator inputs uploaded?
No. The calculation runs in this browser. Favorites, recent tool names, theme and formatting preferences may be saved locally, but calculation inputs are not sent to a calculation server or stored by this website. Shared links do not include entered values.
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