YieldraOn this website
Financial calculators and cash flows · Depreciation
Depreciation. Straight line spreads cost minus salvage evenly; the other methods take more in the early years.
Depreciation
Mathematical examples based on your inputs; taxes, fees and market forecasts are not included.
Results are for study and planning. Check decisions about real money with a qualified professional.
Your calculation
| Year | Depreciation | Book value | Left to depreciate |
|---|---|---|---|
| 1 | 1,800 | 8,200 | 7,200 |
| 2 | 1,800 | 6,400 | 5,400 |
| 3 | 1,800 | 4,600 | 3,600 |
| 4 | 1,800 | 2,800 | 1,800 |
| 5 | 1,800 | 1,000 | 0 |
How the calculation works
Straight line spreads cost minus salvage evenly; the other methods take more in the early years.
A worked example
- Cost
- 10,000
- Salvage value
- 1,000
- Life (years)
- 5
Step by step
- Cost − Salvage value = 10,000 − 1,000 = 9,000
- Straight line: 9,000 ÷ 5 = 1,800 · 8,200 → 6,400 → 4,600 → 2,800 → 1,000
- Sum of years' digits 1: 9,000 × 5 ÷ 15 = 3,000 → 7,000
- Sum of years' digits 2: 9,000 × 4 ÷ 15 = 2,400 → 4,600
- Sum of years' digits 3: 9,000 × 3 ÷ 15 = 1,800 → 2,800
- Sum of years' digits 4: 9,000 × 2 ÷ 15 = 1,200 → 1,600
- Sum of years' digits 5: 9,000 × 1 ÷ 15 = 600 → 1,000
Salvage value is what the asset should be worth at the end of its life. The schedule uses whole years from month 1 and is not a tax schedule.
Edits stay in this browser and are cleared when this page is reloaded.
Page language