Asset Depreciation Converter
The Asset Depreciation calculator helps determine how the value of a fixed asset declines over time. It supports methods like straight-line and declining balance, allowing businesses and individuals to manage accounting and tax planning effectively.
Asset Depreciation Calculator
Straight-Line Depreciation Formula
Explanation:
Straight-line depreciation spreads the cost of an asset evenly across its useful life. This method is the simplest and most commonly used in accounting for long-term assets.
Asset depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. Commonly used for property, equipment, and machinery, it reflects wear and tear, obsolescence, or usage.
Supported Methods:
- Straight-Line
- Declining Balance
- Units of Production (optional for advanced version)
Variables Example:
- Initial Cost: $20,000
- Salvage Value: $2,000
- Useful Life: 5 years
- Depreciation per year: (20,000 – 2,000) / 5 = $3,600