Depreciation of an asset
Spread the cost of an asset over its useful life with the straight-line method.
An asset loses value as it gets used. Straight-line depreciation takes off the same amount every year: (cost - salvage value) ÷ life. A machine costing 10,000, worth 1,000 at the end of 5 years, loses 1,800 a year.
Both financial models also offer faster methods (sum-of-the-years digits and declining balance).
Classic Financial II
Start on the main screen: Press 2ND then CPT (QUIT) to leave a worksheet and return to the plain calculator. ON/OFF also drops back to the standard screen and clears an error.
Open the depreciation worksheet (2nd, 9). The first line is the method, and SL (straight line) is already selected. Press down to reach LIF, the useful life. Type 5 and enter.
2NDDEPR9↓5ENTERPress down to pass the first-month line, and once more to reach the cost (CST). Enter 10000, then the salvage value (SAL) of 1000.
↓↓10000ENTER↓1000ENTER↓You are now at YR 1. Press down to see that year's depreciation.
↓
You should seeDEP= 1,800.00
Press CPT at the year line to step to year 2, then down again for its depreciation.
Classic Financial II key reference · Classic Financial II manual
RPN Financial 12
Start on the main screen: There is no menu to leave: the display always shows the X register. Press f then R/S (P/R) to leave program mode, and clear a pending prefix by pressing ON.
Store the cost in PV, the salvage value in FV, the life in n, and the declining-balance rate (not used by straight line) in i.
10000PV1000FV5n200iType the year number 1, then press f and %T (SL).
1fSL%T
You should see1,800.00
The display holds the year's depreciation. Press x⇄y to see what is left to depreciate.
f with Δ% is SOYD and f with % is DB (declining balance).