Straight Line Depreciation Calculator Tables
The straight line depreciation tables below act as a quick reference to help calculate straight line depreciation for a month. They are based on the formula for straight line depreciation as follows:
Straight Line Depreciation = Cost / Useful Life
It is important to realize that this formula assumes that the salvage value of the asset is zero at the end of its useful life. Salvage value is sometimes referred to as residual value.
How to Calculate Monthly Straight Line Depreciation
As an example of calculating depreciation using the tables, suppose a business purchased at asset for 25,000 with an estimated useful life of 5 years.
Using the Formula
Firstly using the formula shown above, we could calculate the depreciation as follows:
Cost = 25,000 Useful life = 5 years Straight line depreciation = Cost / Useful Life Straight line depreciation = 25,000 / 5 = 5,000 each year Monthly depreciation = 5,000 / 12 = 417 per month
Using the Tables
However, to avoid having to carry out this calculation, the straight line depreciation calculator table below can be used. Again it is important to realize that the tables assume that the salvage or residual value of the asset is zero at the end of its useful life.
If we look at the straight line depreciation tables row for the amount 25,000 and the column for years 5, then the value given by the table is 417, which is the same as in the calculation above.
Additionally amounts can be combined to give the total amount of depreciation. To illustrate suppose an asset costs 16,000 with a useful life of 4 years. The depreciation is calculated by taking the amount for 15,000 and the amount for 1,000 from the 4 years column, which is 313 + 21 = 334 per month.
Straight Line Depreciation Tables Guide and Key
The table provides the monthly straight line depreciation cost for a given useful life and asset cost.
- Years: Each column represents the useful life of the asset in years.
- Cost: Each row represents the cost of the fixed asset.
Additionally our straight line depreciation schedule calculator is available. The calculator helps calculate the straight line depreciation of any asset by entering its cost, salvage value and depreciation rate.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.