Annual Depreciation by Straight-Line Method Calculator

✖Original Value of Assets at Start of Service Life Period refers to the initial cost or acquisition cost of a tangible asset when it is first put into service.ⓘ Original Value of Assets at Start of Service [V]			+10% -10%
✖Salvage Value of Asset at End of Service Life refers to the amount that the asset is expected to be worth when it is retired or disposed of at the conclusion of its useful life.ⓘ Salvage Value of Asset at End of Service [V_s]			+10% -10%
✖Service Life refers to the estimated period during which the asset is expected to provide economic benefits and be used for its intended purpose.ⓘ Service Life [n]			+10% -10%

✖Annual depreciation per Year is a financial accounting method used to allocate the cost of a tangible asset over its estimated useful life.ⓘ Annual Depreciation by Straight-Line Method [d]

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Formula

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Annual Depreciation by Straight-Line Method

Formula

`"d" = ("V"-"V"_{"s"})/"n"`

Example

`"4500"=("50000"-"5000")/"10"`

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Annual Depreciation by Straight-Line Method Solution

STEP 0: Pre-Calculation Summary

Formula Used

Annual Depreciation per Year = (Original Value of Assets at Start of Service-Salvage Value of Asset at End of Service)/Service Life
d = (V-V_s)/n
This formula uses 4 Variables

Variables Used

Annual Depreciation per Year - Annual depreciation per Year is a financial accounting method used to allocate the cost of a tangible asset over its estimated useful life.
Original Value of Assets at Start of Service - Original Value of Assets at Start of Service Life Period refers to the initial cost or acquisition cost of a tangible asset when it is first put into service.
Salvage Value of Asset at End of Service - Salvage Value of Asset at End of Service Life refers to the amount that the asset is expected to be worth when it is retired or disposed of at the conclusion of its useful life.
Service Life - Service Life refers to the estimated period during which the asset is expected to provide economic benefits and be used for its intended purpose.

STEP 1: Convert Input(s) to Base Unit

Original Value of Assets at Start of Service: 50000 --> No Conversion Required
Salvage Value of Asset at End of Service: 5000 --> No Conversion Required
Service Life: 10 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

d = (V-V_s)/n --> (50000-5000)/10

Evaluating ... ...

d = 4500

STEP 3: Convert Result to Output's Unit

4500 --> No Conversion Required

FINAL ANSWER

4500 <-- Annual Depreciation per Year

(Calculation completed in 00.004 seconds)

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< 8 Depreciation Calculators

Asset Value after 'a' Years

Go Asset Value = Original Value of Assets at Start of Service-(Original Value of Assets at Start of Service-Salvage Value of Asset at End of Service)*(((1+Annual Interest Rate)^(Number of Years in Actual Use)-1)/((1+Annual Interest Rate)^(Service Life)-1))

Replacement Value by Sinking Fund Method

Go Replacement Value = (Original Value of Assets at Start of Service-Asset Value)/((((1+Annual Interest Rate)^(Number of Years in Actual Use)-1)/((1+Annual Interest Rate)^(Service Life)-1)))

Depreciation by Sum of Year Digit Method

Go Depreciation = (2*(Service Life-Number of Years in Actual Use+1))/(Service Life*(Service Life+1))*(Original Value of Assets at Start of Service-Salvage Value of Asset at End of Service)

Fixed Percentage Factor using Matheson Formula

Go Fixed Percentage Factor = 1-(Salvage Value of Asset at End of Service/Original Value of Assets at Start of Service)^(1/Service Life)

Annual Depreciation by Straight-Line Method

Go Annual Depreciation per Year = (Original Value of Assets at Start of Service-Salvage Value of Asset at End of Service)/Service Life

Book Value of Process Equipment at any Time during Service Life

Go Asset Value = Original Value of Assets at Start of Service-Number of Years in Actual Use*Annual Depreciation per Year

Asset Value using Declining Balance Method

Go Asset Value = Original Value of Assets at Start of Service*(1-Fixed Percentage Factor)^Number of Years in Actual Use

Depletion Cost

Go Depletion Cost = Initial Cost*(Amount of Material Used/Original Amount of Material Purchased)

Annual Depreciation by Straight-Line Method Formula

Annual Depreciation per Year = (Original Value of Assets at Start of Service-Salvage Value of Asset at End of Service)/Service Life
d = (V-V_s)/n

What is Depreciation?

Depreciation is an accounting method used to allocate the cost of a tangible asset over its estimated useful life. It reflects the gradual reduction in the value of the asset over time due to factors such as wear and tear, obsolescence, and aging. Depreciation is a non-cash expense, meaning it does not involve an actual outflow of cash, but it is crucial for accurately reflecting the cost of using assets in a business over time.

What is Salvage Value?

Salvage value, also known as residual value or scrap value, refers to the estimated residual worth or market value of a tangible asset at the end of its useful life. It represents the amount that the asset is expected to be worth when it is retired, disposed of, or sold. Salvage value is a key component in the calculation of depreciation, influencing the allocation of the asset's cost over its useful life.

How to Calculate Annual Depreciation by Straight-Line Method?

Annual Depreciation by Straight-Line Method calculator uses Annual Depreciation per Year = (Original Value of Assets at Start of Service-Salvage Value of Asset at End of Service)/Service Life to calculate the Annual Depreciation per Year, The Annual Depreciation by Straight-Line Method is a calculation used to allocate the cost of a tangible asset evenly over its estimated useful life. Annual Depreciation per Year is denoted by d symbol.

How to calculate Annual Depreciation by Straight-Line Method using this online calculator? To use this online calculator for Annual Depreciation by Straight-Line Method, enter Original Value of Assets at Start of Service (V), Salvage Value of Asset at End of Service (V_s) & Service Life (n) and hit the calculate button. Here is how the Annual Depreciation by Straight-Line Method calculation can be explained with given input values -> 4850 = (50000-5000)/10.

FAQ

What is Annual Depreciation by Straight-Line Method?

The Annual Depreciation by Straight-Line Method is a calculation used to allocate the cost of a tangible asset evenly over its estimated useful life and is represented as d = (V-V_s)/n or Annual Depreciation per Year = (Original Value of Assets at Start of Service-Salvage Value of Asset at End of Service)/Service Life. Original Value of Assets at Start of Service Life Period refers to the initial cost or acquisition cost of a tangible asset when it is first put into service, Salvage Value of Asset at End of Service Life refers to the amount that the asset is expected to be worth when it is retired or disposed of at the conclusion of its useful life & Service Life refers to the estimated period during which the asset is expected to provide economic benefits and be used for its intended purpose.

How to calculate Annual Depreciation by Straight-Line Method?

The Annual Depreciation by Straight-Line Method is a calculation used to allocate the cost of a tangible asset evenly over its estimated useful life is calculated using Annual Depreciation per Year = (Original Value of Assets at Start of Service-Salvage Value of Asset at End of Service)/Service Life. To calculate Annual Depreciation by Straight-Line Method, you need Original Value of Assets at Start of Service (V), Salvage Value of Asset at End of Service (V_s) & Service Life (n). With our tool, you need to enter the respective value for Original Value of Assets at Start of Service, Salvage Value of Asset at End of Service & Service Life and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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