Calculators

Straight-Line Depreciation

Straight-Line Depreciation is part of Toolspire and is ready as soon as this page loads. A ₹1,000 asset with ₹100 salvage over 5 years loses ₹180 a year. The charge does not shrink. This is the straight-line method, not written-down value.

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CostSalvage valueUseful life in years

Result

180.00 a year

Depreciable amount 900.00 over 5 years. Book value at the end equals salvage.

A bookkeeping sketch. Tax depreciation blocks and Companies Act lives can differ.

On this page

What you can do here

The same charge every year

Year 5 is the same rupee amount as year 1. That is the point of straight line.

Salvage is not depreciated

Only the gap between cost and what you expect to recover is spread.

Life is whole years

The page rounds the life to a year count before it divides.

The sequence

How to use the Straight-Line Depreciation

1
Use the capitalised cost
Include what you capitalised. Do not also deduct the same installation cost as an expense.
2
Type a salvage you can defend
Zero is allowed. A salvage higher than cost is not.
3
Do not use this for a block of assets under tax law
Income-tax written-down value is a different method. The declining-balance page is closer to that shape, and even that is not a return.

Worth knowing

Straight-Line Depreciation on Toolspire: annual charge = (cost − salvage) ÷ years.
₹1,000 cost, ₹100 salvage, 5 years is ₹180 a year.
After the life, the book value equals the salvage, because the charges add up to cost minus salvage.
Salvage above cost is rejected. Depreciation would otherwise add value.

Equal charges, then salvage remains

Straight line takes the portion of cost you do not expect to recover and divides it by the useful life. Five charges of ₹180 on a ₹1,000 asset with ₹100 salvage use up ₹900 and leave ₹100. The method ignores that a machine often loses more value in year one. It also ignores tax blocks, extra shift depreciation and a change of estimate.

FAQ

Questions about Straight-Line Depreciation

Where does Straight-Line Depreciation run?

Straight-Line Depreciation runs in this tab on Toolspire. What you type or drop in is not sent to us and is not stored on a server.

What is the yearly charge on ₹1,000 with ₹100 salvage over 5 years?

₹180. The depreciable amount is ₹900, and 900 ÷ 5 is 180.

Does the charge fall each year?

No. Falling charges are the declining-balance method. Straight line repeats the same amount.

Can salvage be zero?

Yes. The whole cost is then spread across the life.

Is this the income-tax depreciation rate?

No. Tax depreciation in India is generally a block written-down-value calculation. This page is the equal-charge method only.

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Last updated 23 October 2026Report a problem or suggest a feature