Depreciation Calculator
Calculate straight-line depreciation from asset cost, salvage value, and useful life.
Result
Annual Depreciation Expense
RM 0.00
Depreciable Amount
RM 0.00
Useful Life: 0 years
Status: Enter a useful life greater than 0
Annual Depreciation Expense = (Cost - Salvage Value) / Useful Life
How do you calculate straight-line depreciation?
Subtract the salvage value from the asset cost, then divide by the useful life in years: annual depreciation = (cost - salvage value) / useful life. Straight-line spreads the same charge across every year of the asset's life, and book value at any point is the cost less the depreciation charged so far.
Only the cost is a fact. Salvage value and useful life are estimates you choose, and they drive the answer, so it is worth revisiting them if plans for the asset change. In Malaysia, book depreciation is also not what reduces a tax bill: LHDN grants capital allowances on qualifying assets under its own rules instead.
Calculate depreciation in a few steps
- Enter the asset cost assigned to the fixed asset.
- Add the expected salvage value at the end of its useful life.
- Enter the useful life in years to calculate annual depreciation expense.
- Review the straight-line depreciation result and summary instantly.
Why use this depreciation calculator?
- Plan fixed asset costs over time with a simple straight-line depreciation estimate.
- Check accounting homework that uses asset cost, salvage value, and useful life.
- Review bookkeeping entries tied to depreciation expense.
- Estimate annual depreciation expense for budgeting or internal review.
- Support simple financial reporting for assets that use straight-line depreciation.
When to use this depreciation calculator
- Plan fixed asset costs over time with a simple straight-line depreciation estimate.
- Check accounting homework that uses asset cost, salvage value, and useful life.
- Review bookkeeping entries tied to depreciation expense.
- Estimate annual depreciation expense for budgeting or internal review.
- Support simple financial reporting for assets that use straight-line depreciation.
Related Tools
Related Guide Article
Depreciation guide
Straight-Line Depreciation: The Two Numbers You Guess
Cost is a fact, useful life and salvage value are estimates. Learn how to set both, and why LHDN will not accept your depreciation figure.
Depreciation Calculator FAQs
What is depreciation?
Depreciation is the process of spreading an asset's cost over the years it is expected to be used.
What is straight-line depreciation?
Straight-line depreciation records the same depreciation expense each year over an asset's useful life.
How do you calculate annual depreciation?
Subtract salvage value from asset cost, then divide the result by the useful life in years.
What is salvage value?
Salvage value is the estimated value of the asset at the end of its useful life.
What is useful life?
Useful life is the number of years an asset is expected to provide value to the business.
Can this calculator help with accounting homework?
Yes. It can help check simple straight-line depreciation calculations, but you should still show your working.