To compute the amortized cost of the Server Hardware cost driver, you can configure the depreciation method and the depreciation period. Cost Insight supports two yearly depreciation methods and you can set the depreciation period from two to seven years.
Cost Insight calculates the yearly depreciation values and then divides the value by 12 to arrive at the monthly depreciation.
Method 
Calculation 

Straight line 

Max of Double or Straight 
Note:

Example for Straight Line Depreciation Method
Year 
Original Cost 
Accumulated Depreciation 
Straight Line Depreciation Cost 

Year 1 
10000 
0 
[(100000)/5] = 2000 
Year 2 
10000 
2000 
[(100002000)/4] = 2000 
Year 3 
10000 
4000 
[(100002000)/3] = 2000 
Year 4 
10000 
6000 
[(100002000)/2] = 2000 
Year 5 
10000 
8000 
[(100002000)/1] = 2000 
Example for Max of Double and Straight Line Depreciation Method
Year 
Original Cost 
Depreciation Rate 
Accumulated Depreciation 
Straight Line Depreciation Cost 

Year 1 
10000 
0.4 
0 
Maximum([(100000)*0.4],[(100000)/5]) = Maximum(4000, 2000) = 4000 which is 333.33 per month. 
Year 2 
10000 
0.4 
4000 
Maximum([(100004000)*0.4],[(100004000)/4]) = Maximum (2400, 1500) = 2400 which is 200 per month. 
Year 3 
10000 
0.4 
6400 
Maximum([(100006400)*0.4],[(100006400)/3]) = Maximum (1440, 1200) = 1440 which is 120 per month. 
Year 4 
10000 
0.4 
7840 
Maximum([(100007840)*0.4],[(100007840)/2]) = Maximum (864, 1080) = 1080 which is 90 per month. 
Year 5 
10000 
0.4 
8920 
Maximum([(100008920)*0.4],[(100008920)/1]) = Maximum (432, 1080) = 1080 which is 90 per month. 