The Straight Line Rate Formula is a method of business calculations and financial projections that uses a straight line to determine depreciation expenses over the life of an asset. It calculates the annual amount of depreciation for the asset by dividing its cost less salvage value by the number of years it will be in use. This formula is most commonly used for accounting and taxation purposes, as it gives an accurate estimate of depreciation expenses and can help to assess future earnings potential. By utilizing this formula, businesses can better equip themselves for success and prepare for the future.