How It Works

The value of an asset will most likely decrease over time. This means that many business purchases will need to account for deprecation in order to calculate the correct tax deductions each year. To achieve this, the cost of an asset should be spread evenly over its useful life; this is called straight line depreciation. This calculator shows how much an asset will depreciate each year—the yearly depreciation rate.

Enter the Initial Purchase Price and the Salvage Value, which is how much you expect you'll be able to sell the asset for when you're done using it. Move the Life of Asset slider to the number of years the asset will last or the number of years you plan to use the asset for. Using a straight line deprecation, the calculator will display how the asset will depreciate over time, the depreciable asset value, the yearly depreciation rate, and the annual depreciation.

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