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:
Download the Free Template
Enter your name and email in the form below and download the free template now!
With the straight line depreciation method, the value of an asset is reduced uniformly over each period until it reaches its salvage valueSalvage ValueSalvage value is the estimated amount that an asset is worth at the end of its useful life. Salvage value is also known as scrap value or residual value, and is used in calculating depreciation expense. The value depends on how long the company expects to use the asset and how hard the asset is used. For example, if a. Straight line depreciation is the most commonly used and straightforward depreciation methodDepreciation ExpenseDepreciation expense is used to reduce the value of plant, property, and equipment to match its use, and wear and tear, over time. Depreciation expense is used to better reflect the expense and value of a long-term asset as it relates to the revenue it generates. for allocating the cost of an assetIntangible AssetsAccording to the IFRS, intangible assets are identifiable, non-monetary assets without physical substance. Like all assets, intangible assets are those that are expected to generate economic returns for the company in the future. As a long-term asset, this expectation extends beyond one year.. 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 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)
More Free Templates
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation and Word document templates.
- Excel Modeling TemplatesExcel & Financial Model TemplatesDownload free financial model templates - CFI's spreadsheet library includes a 3 statement financial model template, DCF model, debt schedule, depreciation schedule, capital expenditures, interest, budgets, expenses, forecasting, charts, graphs, timetables, valuation, comparable company analysis, more Excel templates
- PowerPoint Presentation Templates
- Transaction Document TemplatesTemplatesFree business templates to use in your personal or professional life. Templates include Excel, Word, and PowerPoint. These can be used for transactions, legal, financial modeling, financial analysis, business planning and business analysis.
