$1,999/Year Depreciation
A $10,000 asset with $6 salvage value over 5 years depreciates $1,998.80/year (straight-line method).
$1,998.80
Annual Depreciation
$166.57
Monthly Depreciation
How This Works
Straight-line depreciation spreads an asset's cost evenly over its useful life — the simplest and most common depreciation method. Other methods (declining balance, units of production) front-load or usage-base the expense instead.
Formula
Annual Depreciation = (Cost − Salvage Value) ÷ Useful Life
Example
A $50,000 asset with $5,000 salvage value over 10 years depreciates $4,500 per year, or $375 per month.
Frequently Asked Questions
What is the annual depreciation on a $10,000 asset?
$1,998.80 per year over 5 years, using the straight-line method.
What is salvage value?
The estimated resale or scrap value of the asset at the end of its useful life — the amount you don't depreciate.