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Accounting & Finance

Depreciable base

The amount that will be written off over the asset's life.

The Formula

Base = Cost - Salvage

The amount that will be written off over the asset's life.

SymbolMeaning
CAsset cost
SSalvage value

What Each Symbol Means

Ccurrency

Asset cost

What the asset cost to acquire.

Scurrency

Salvage value

Expected value at the end of its life.

See It Worked With Real Numbers

A formula on its own does not tell you which number goes where. The how to calculate depreciation page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.

Where This Formula Appears

This equation is the working core of How To Calculate Depreciation, filed under Business. Every number the guide produces comes from substituting into this one line.