Straight-Line Depreciation
The Simplest Depreciation Method
Straight-line depreciation allocates an equal amount of depreciation expense to each accounting period throughout an asset's useful life.
Annual Depreciation = (Cost − Salvage Value) ÷ Useful Life
- Equal annual depreciation.
- Simple to calculate.
- Suitable when benefits are consumed evenly.
- Most commonly applied in practice.
Summary
Straight-line depreciation spreads depreciable cost evenly across the asset's useful life.