Straight-line depreciation is one of the simplest and most accurate methods of calculating an asset’s value over time. It starts with an estimated economic life of the asset, and divides the original cost of the asset by that estimate to come up with a consistent rate of depreciation. This rate is then used to spread out the expenditures associated with using and maintaining the asset over the life of its use. The end result is a straight line of decreasing values for the asset on your balance sheets. In other words, straight-line depreciation helps maintain consistent budgeting and accuracy in recording fixed asset values year after year.