straight line depreciation


A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year. The annual depreciation is calculated by subtracting the salvage value of the asset from the purchase price, and then dividing this number by the estimated useful life of the asset.

Use this term in a sentence

You need to understand how the straight line depreciation will affect your machinery and sell it when the time is right.

​ Was this Helpful? YES  NO 3 people found this helpful.

We decided to use the straight line depreciation method as we expected the normal wear and tear to slowly affect the machine.

​ Was this Helpful? YES  NO 10 people found this helpful.

The straight line depreciation of a new car begins as soon as you drive it off the lot, but it can be altered by things like car accidents.

​ Was this Helpful? YES  NO 4 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Sum-of-the-Years'-Digits Method Accelerated Depreciation