Straight-Line Depreciation Calculator
Calculate annual depreciation expense and book value schedules. Includes a reference database of IRS Useful Life estimates for common asset classes.
Computers/Autos: 5 yrs
Furniture: 7 yrs
Land Imp: 15 yrs
| Year | Expense | Accumulated | Book Value |
|---|
About
Straight-line depreciation is the default method for allocating the cost of a tangible asset over its useful life. It assumes the asset consumes its economic utility evenly over time. This tool calculates the annual expense and produces a schedule showing the declining Book Value. Accurate depreciation inputs are vital for balance sheets and tax strategies. The calculator includes a lookup feature for standard "Useful Life" estimates derived from IRS Publication 946 and US GAAP conventions, assisting users who are unsure whether a computer should be depreciated over 3 or 5 years.
Formulas
The calculation distributes the depreciable base evenly across the lifespan N.
Annual Expense:
E = C − SNWhere C is the Cost Basis, S is the Salvage Value (estimated resale value at end of life), and N is the Useful Life in years. The Book Value at year t is C − (E × t).
Reference Data
| Asset Category | GDS Life (Years) | ADS Life (Years) | Examples |
|---|---|---|---|
| Information Systems | 5 | 5 | Computers, Servers, Peripherals |
| Office Furniture | 7 | 10 | Desks, Chairs, Files, Safes |
| Automobiles | 5 | 5 | Taxis, Cars, Light Trucks |
| Land Improvements | 15 | 20 | Fences, Sidewalks, Drainage |
| Residential Rental | 27.5 | 40 | Apartment Buildings, Rental Homes |
| Non-Residential Real Estate | 39 | 40 | Offices, Warehouses, Factories |
| Tools & Machinery | 7 | 10 | Manufacturing Equipment (General) |
| Software (Off-the-shelf) | 3 | 3 | Standard Business Software |