Calculate asset value reduction using the Straight Line Method (SLM). View yearly depreciation schedules and asset values.
This straight line depreciation calculator spreads an asset’s cost evenly across its useful life. Enter the asset cost, salvage value and useful life to get the annual depreciation and the year-by-year book value.
Straight line over 6 years. The same amount is written off each year until the asset reaches its salvage value of ₹1,800.
| Year | Depreciation | Closing book value |
|---|---|---|
| 1 | ₹1,700 | ₹10,300 |
| 2 | ₹1,700 | ₹8,600 |
| 3 | ₹1,700 | ₹6,900 |
| 4 | ₹1,700 | ₹5,200 |
| 5 | ₹1,700 | ₹3,500 |
| 6 | ₹1,700 | ₹1,800 |
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The Straight Line Method (SLM) is the simplest and most commonly used method to calculate the depreciation of a fixed asset. Under this method, the same amount of depreciation expense is written off in each year of the asset’s useful life until it reaches its salvage value.
Annual Depreciation = (Cost of Asset − Salvage Value) ÷ Useful Life Years
Where:
Cost of Asset = Initial purchase price of the asset
Salvage Value = Estimated resale value of the asset at the end of its useful life
SLM is popular because of its simplicity and consistency. It is ideal for assets whose utility reduces uniformly over time, such as furniture, office buildings, and simple shop equipment.
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Subtract the salvage value from the asset cost and divide by the useful life in years. The same amount is charged every year.
The amount you expect the asset to be worth at the end of its useful life. If you expect nothing, enter zero.
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