How we calculate

Annual straight-line depreciation = (cost − residual value) / years. This accounting scenario does not imply an automatic tax deduction.

Worked example

These illustrative inputs let you check the method. They are not figures for a real company or automatically current tax rates.

Inputs

Cost

10,000

Residual value

1,000

Years

5

Results

Annual depreciation

1,800

Monthly depreciation

150

Total depreciation

9,000

Change assumptions in the calculator and compare outcomes. Money follows your input unit; figures from different periods need adjustment before comparison.