Even write-down over an asset's life.
A worked example
Starting figures
- Asset cost
- $24,000
- Salvage value
- $3,000
- Useful life (years)
- 6
What it returns
- Yearly depreciation
- $3,500
- Monthly
- $291.67
- Total depreciable
- $21,000
- Book value after 3 years
- $13,500
How to read the results
With the defaults above, yearly depreciation works out at $3,500.