Depreciation Expenses Formula Examples with Excel Template

Depreciation Expense Formula: Accounting Explained

1. Selecting a useful life that is too long under-depreciates assets, while too short over-depreciates.
2. Straight-line depreciation is an accounting method that measures the depreciation of a fixed asset over time.
3. Accounting rules dictate that revenues and expenses are matched in the period in which they are incurred.
4. To avoid doing so, depreciation is used to better match the expense of a long-term asset to periods it offers benefits or to the revenue it generates.

What Is Depreciation? and How Do You Calculate It?

Depreciation Formula Calculator