Straight-Line Depreciation
Annual depreciation, accumulated through year, and book value from cost / salvage / life.
Example
You enter
- Asset cost (USD) 10000
- Salvage value (USD) 1000
- Useful life (years) 5
- Year of interest 1
You get
- Annual depreciation $1800
- Accumulated through year $1800
- Remaining book value $8200
Checked against published worked examples from: Internal Revenue Service.
Details, formula, and sources
ScopeIRS Pub 946 Chapter 1 by name.
Formula or tableAnnual depreciation = (cost - salvage) / useful_life. Accumulated = annual * year_of_interest. Book value = cost - accumulated.
Source and editionIRS Publication 946 (Chapter 1: Straight-Line Method), current edition.
Free accessFree at irs.gov/publications/p946.
What governsEstimate only. Tax law changes. Confirm with the current IRS publication or a licensed CPA before filing.
API field namescost, salvage, life_years, year_of_interest, annual_depreciation, accumulated_depreciation, book_value
- Convention even split across the full useful life (no half-year, no mid-quarter)user-supplied life is the recovery period