Straight-line depreciation.

Straight-line depreciation spreads asset cost evenly over useful life. Formula: (cost - salvage value) ÷ useful life years. Used for fixed assets like equipment, vehicles, buildings. Annual depreciation reduces taxable income each year. Standard accounting method when no specific reason to accelerate (declining balance, MACRS).

10,000 asset, 1,000 salvage, 5-year life: depreciable base 9,000 ÷ 5 = 1,800/year. Monthly: 150. Reduces taxable income 1,800/year for 5 years. At 20% tax rate: 360 tax saving per year, 1,800 total. Effective asset cost after tax: 8,200 net.

Asset depreciation methods: Straight-line (this calculator) - even spread. Declining balance - faster early years. Units of production - based on usage. MACRS - government-defined recovery periods. Choose based on asset type and tax strategy. Most non-vehicle equipment uses straight-line for simplicity.

Run it with sensible defaults

Using asset cost of 10,000, salvage value of 1,000, useful life of 5 years, the calculation works out to 1,800.00. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Asset Cost, Salvage Value, and Useful Life (years) — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

How the math works

Depreciable base = cost - salvage. Annual depreciation = base ÷ useful life. Monthly = annual ÷ 12. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

Using this in pay negotiations

Knowing the exact figure behind a headline rate gives you specific numbers to anchor to in conversations about pay. "The difference is £X per month after tax" lands harder than "a couple of grand a year". Concrete numbers move decisions.

What this doesn't capture

Tax bands, pension contributions, student-loan deductions, and benefits-in-kind sit outside this calculation. The figure is the headline; your actual position depends on local tax rules and personal circumstances. Pair with a dedicated take-home calculator for the full picture.