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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

Input Fields
C
$
The original purchase price of the asset
S
$
Estimated residual value after useful life
L
Expected number of years the asset will be used
Y
The year for which depreciation is calculated
If enabled, the result will update automatically when you change any value.

Straight-Line Depreciation Formula

Formula
$$\text{Depreciation per year} = \frac{\text{Initial Cost} – \text{Salvage Value}}{\text{Useful Life (years)}}$$

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
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