The depreciable cost of an asset is the amount that can be depreciated over its useful life. This tool helps calculate that value by subtracting the salvage value from the purchase price of the asset.

## How to Calculate Depreciable Cost

Follow these steps to find the depreciable cost:

- Input the purchase price of the asset.
- Enter the salvage value, which is the estimated value of the asset at the end of its useful life.
- Provide the asset's useful life in years.
- Click the 'Calculate Depreciable Cost' button to get the result.

### Formula Used

The formula for calculating the depreciable cost is:

**Depreciable Cost = Purchase Price - Salvage Value**

This formula determines the amount of depreciation that can be applied over the useful life of the asset.

### Example Calculation

If the purchase price of an asset is $50,000, the salvage value is $5,000, and the useful life is 10 years, the calculation would be:

**Depreciable Cost = $50,000 - $5,000 = $45,000**

This means the asset can be depreciated by $45,000 over its useful life.