Straight-Line Method

Definition

Equal depreciation or amortization in every period of the asset's life. The default method for most assets and virtually all amortization.

Formula

Period expense = (Cost - Salvage) / Number of periods

Worked Example

$36,000 license, 36-month life, no salvage:

Monthly amortization = $36,000 / 36 = $1,000 — identical every month.

Interpretation & Pitfalls

Choose straight-line unless the asset demonstrably loses value faster early in life.

In TupicFinance

Straight-line is the default schedule applied to registered assets.