How to Calculate Depreciation Using Excel. Two common ways of calculating depreciation are the straight-line and double declining balance methods. Excel can accomplish both using the SLN function ...

Straight-line depreciation is calculated by subtracting the salvage value from the asset’s cost and dividing it by the years estimated for its useful life.

Understanding what depreciation expense is and the methods can help you determine if a company is a good investment opportunity. Here's 4 common methods.

1. Straight-line depreciation This is the most common and simplest depreciation method. Formula: (Cost of asset – Scrap value of asset) / Useful life of asset = Depreciation expense ...

With the straight-line method, you choose to depreciate your property an equal amount for each year over its useful life span. Here are the steps to calculate monthly straight-line depreciation: ...

To calculate depreciation using the straight-line method, subtract the salvage value from the asset's purchase price, then divide that figure by the projected useful life of the asset.