Straight-Line Percentage

[streɪt laɪn pərˈsɛntɪdʒ]

What is the definition of Straight-Line Percentage?

A percentage used to determine the amount of depreciation to be recorded each accounting period for the straight-line method of depreciation.

Using Straight-Line Percentage in an Example

In the straight-line method of depreciation, if an asset is valued at $10,000 with a useful life of 10 years and no salvage value, the straight-line percentage would be 10% per year. This means $1,000 of depreciation is recorded annually.

Using Straight-Line Percentage in a sentence

We calculated the straight-line percentage to ensure consistent depreciation expenses over the asset's useful life.

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