Calculate asset depreciation using straight-line or declining balance method.
Straight-Line: Depreciation = (Asset Cost − Salvage Value) ÷ Useful Life
Declining Balance: Depreciation per period = Book Value × (Rate ÷ 100). Remaining value = Cost − cumulative depreciation.
Annual depreciation shown represents depreciation in the first period. Remaining value represents the book value after the selected number of periods.
Depreciation is the allocation of an asset's cost over its useful life.
Subtract salvage value from cost and divide by useful life in years.
A method that applies a fixed percentage to the remaining book value each period, so depreciation is higher in early years.