# Straight Line Depreciation Calculator

When the value of an asset drops at a set rate over time, it is known as straight line depreciation.

Let's take an asset which is worth 10,000 and depreciations from 10,000 all the way to 2,000 in the time span of 5 years. The yearly depreciation of that asset is 1,600.

How is it calculated? 10,000 minus 2,000 is 8,000. 8,000 divided by 5 years is 1,600.

^{ st }Year Depreciation Expense:

## Straight Line Depreciation Formula

### The following algorithms are used in our calculator:

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The depreciation per period = the value of the asset minus the final value, which is then divided by the total number of periods.
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The number of depreciation periods = the value of the asset minus the final value, which is then divided by the total value per period.
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You may also be interested in our Percentage (Declining Balance) Depreciation Calculator