# Straight Line Depreciation Template

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## Straight-Line Depreciation Template

This straight-line depreciation template demonstrates how to calculate depreciation expense using the straight-line depreciation method.

Below is a screenshot of the straight-line depreciation template: With the straight-line depreciation method, the value of an asset is reduced uniformly over each period until it reaches its salvage value. Straight-line depreciation is the most commonly used and straightforward depreciation method for allocating the cost of an asset.  It is calculated by dividing the cost by the useful life of the asset.

### Formula for Straight Line Depreciation

The formula for straight-line depreciation is as follows:

Annual Depreciation Expense = (Cost of the Asset − Salvage Value) / Useful Life of the Asset

Where:

Cost of the asset is the purchase price of the asset

Salvage value is the value of the asset at the end of its useful life

Useful life of the asset represents the number of periods in which the asset is expected to be used by the company

Additionally, the straight-line depreciation rate can be calculated as follows:

Straight Line Depreciation Rate = Annual Depreciation Expense / (Cost of the Asset − Salvage Value)

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