Depreciation Calculation Formula is a calculation used to spread the cost of an asset over its useful life. The formula is generally accepted as the amount of an asset’s purchase price that needs to be allocated each year on its way to running out of useful service life. It’s an integral part of accounting and bookkeeping, acting like a bracket for preparing investor reports and business taxes. By calculating depreciation correctly, businesses can ensure accurate financial reporting and also make sure they’re paying the proper tax liabilities. So make sure you use the right Depreciation Calculation Formula!