How much do depreciation assumptions change MICROSOFT CORPORATION's earnings?
Gross property and equipment, depreciation and capital spending, with an alternative useful-life calculator. Cash spending is kept separate.
Depreciation against the asset base
Gross property and equipment of $431.77B against $34.30B of depreciation and amortization implies an average life of about 12.6 years (gross assets ÷ annual charge). The charge includes amortization where the company reports them together.
| Fiscal year | Gross PP&E | Net PP&E | Depreciation & amortization | Implied life (yrs) | Capital expenditure (cash) |
|---|---|---|---|---|---|
| 2021 | $111.07B | $59.72B | $9.30B | 11.9 | $20.62B |
| 2022 | $134.06B | $74.40B | $12.60B | 10.6 | $23.89B |
| 2023 | $163.89B | $95.64B | $11.00B | 14.9 | $28.11B |
| 2024 | $212.01B | $135.59B | $15.20B | 13.9 | $44.48B |
| 2025 | $298.62B | $204.97B | $22.00B | 13.6 | $64.55B |
| 2026 | $431.77B | $313.08B | $34.30B | 12.6 | $115.95B |
10-K filed 2026-07-29 · Depreciation
Compare an alternative useful life
A 14-year average life gives an annual charge of $30.84B instead of $34.30B. After tax at 21%, net income would be higher by $2.73B. Cash spending ($115.95B) is unchanged.
Straight-line on gross assets, no salvage value; land and construction in progress are not separated. Treat as an order-of-magnitude comparison.