{
    "name": "Depreciation Calculator",
    "url": "https://calculators.geekmidst.com/calculators/depreciation-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/depreciation-calculator.md",
    "category": "Business & tax",
    "description": "Build a depreciation schedule by straight-line, double-declining balance, 150% declining balance or sum-of-the-years’ digits, with book value each year.",
    "summary": "Depreciation spreads an asset’s cost, less what you expect to sell it for, over its useful life. Straight-line charges the same each year; accelerated methods charge more in the early years.",
    "also_called": [
        "Asset depreciation calculator",
        "Depreciation schedule calculator"
    ],
    "applies_to": "Worldwide",
    "last_updated": "2026-10-29",
    "computation": "Results are computed in the visitor’s browser on the HTML page. This API describes the calculator; it does not compute results.",
    "inputs": [
        {
            "name": "cost",
            "label": "Asset cost",
            "type": "number",
            "default": "10000"
        },
        {
            "name": "salvage",
            "label": "Salvage (residual) value",
            "type": "number",
            "default": "1000",
            "optional": true
        },
        {
            "name": "life",
            "label": "Useful life",
            "type": "number",
            "default": "5",
            "unit": "years"
        },
        {
            "name": "method",
            "label": "Method",
            "type": "select",
            "default": "sl",
            "options": {
                "sl": "Straight-line",
                "ddb": "Double-declining balance (200%)",
                "db150": "150% declining balance",
                "syd": "Sum-of-the-years’ digits"
            }
        },
        {
            "name": "year",
            "label": "Show results for year",
            "type": "number",
            "default": "1"
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "year_dep",
            "label": "Depreciation in the chosen year",
            "format": "currency"
        },
        {
            "key": "accumulated",
            "label": "Accumulated depreciation to date",
            "format": "currency"
        },
        {
            "key": "book_value",
            "label": "Book value at the end of that year",
            "format": "currency"
        },
        {
            "key": "depreciable",
            "label": "Total depreciable amount",
            "format": "currency"
        },
        {
            "key": "first_year_pct",
            "label": "First-year depreciation as % of cost",
            "format": "percent"
        }
    ],
    "formula": {
        "text": "Straight-line: (Cost − Salvage) ÷ Life.  Declining balance: Book value × Factor ÷ Life, switching to straight-line when that is larger.  SYD: (Cost − Salvage) × Remaining life ÷ (Life × (Life + 1) ÷ 2)",
        "variables": {
            "Cost": "what the asset cost, including delivery and set-up",
            "Salvage": "expected value at the end of its life",
            "Life": "useful life in years",
            "Factor": "2 for double-declining, 1.5 for 150%"
        }
    },
    "worked_example": {
        "inputs": {
            "cost": "10000",
            "salvage": "0",
            "life": "5",
            "method": "ddb",
            "year": "4",
            "currency": "USD"
        },
        "steps": [
            "Double-declining rate = 2 ÷ 5 = 40% of book value.",
            "Years 1–3: 10,000 × 40% = 4,000; 6,000 × 40% = 2,400; 3,600 × 40% = 1,440. Book value is now 2,160.",
            "Year 4: 40% would be 864, but straight-line over the 2 remaining years gives 2,160 ÷ 2 = 1,080, so switch to 1,080."
        ],
        "result": "In year 4 the asset depreciates by $1,080, leaving a book value of $1,080 that is written off in year 5."
    },
    "interpretation": "Every method writes off the same total; they differ only in timing. Accelerated methods bring expenses forward, which matches assets that lose value fast, like vehicles and computers.",
    "assumptions": [
        "Full-year depreciation in every year, including the first (no half-year or mid-month convention).",
        "Declining-balance methods switch to straight-line when that gives a larger charge, so the asset reaches its salvage value at the end of its life."
    ],
    "limitations": [
        "Tax depreciation follows its own rules (for example MACRS in the US or capital allowances in the UK), which this book-depreciation calculator does not apply.",
        "Units-of-production depreciation is not included."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "Which method should I use?",
            "answer": "For financial statements, use the method that best matches how the asset is used up; straight-line is the most common. For tax, use the method your tax authority prescribes."
        },
        {
            "question": "Why switch from declining balance to straight-line?",
            "answer": "A pure declining balance never reaches the salvage value. Switching when straight-line on the remaining amount is larger is the standard way to finish exactly at salvage."
        }
    ],
    "sources": [],
    "related": [
        {
            "name": "Lease Calculator",
            "url": "https://calculators.geekmidst.com/calculators/lease-calculator"
        },
        {
            "name": "Break-even Calculator",
            "url": "https://calculators.geekmidst.com/calculators/break-even-calculator"
        },
        {
            "name": "ROI Calculator",
            "url": "https://calculators.geekmidst.com/calculators/roi-calculator"
        },
        {
            "name": "Inflation Calculator",
            "url": "https://calculators.geekmidst.com/calculators/inflation-calculator"
        }
    ],
    "disclaimer": null,
    "publisher": "GM¹X CalcVerse"
}