{
    "name": "Farm Equipment Depreciation Calculator",
    "url": "https://calculators.geekmidst.com/calculators/farm-equipment-depreciation-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/farm-equipment-depreciation-calculator.md",
    "category": "Agriculture",
    "description": "Depreciate a tractor or farm machine by straight line, declining balance or sum-of-years’ digits, with each year’s charge, book value and a full schedule.",
    "summary": "Depreciation spreads a machine’s cost, less what you expect to sell it for, over its useful life. The method decides how much falls in the early years.",
    "also_called": [
        "Tractor depreciation calculator",
        "Machinery depreciation 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": "Purchase cost",
            "type": "number",
            "default": "50000"
        },
        {
            "name": "salvage",
            "label": "Salvage (trade-in) value at the end",
            "type": "number",
            "default": "5000"
        },
        {
            "name": "life",
            "label": "Useful life",
            "type": "number",
            "default": "10",
            "unit": "years"
        },
        {
            "name": "method",
            "label": "Method",
            "type": "select",
            "default": "ddb",
            "options": {
                "sl": "Straight line",
                "ddb": "Double declining balance (200%)",
                "db150": "150% declining balance",
                "syd": "Sum of years’ digits"
            }
        },
        {
            "name": "year",
            "label": "Show year",
            "type": "number",
            "default": "3"
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "dep_year",
            "label": "Depreciation in that year",
            "format": "currency"
        },
        {
            "key": "book_end",
            "label": "Book value at the end of that year",
            "format": "currency"
        },
        {
            "key": "accumulated",
            "label": "Depreciation to date",
            "format": "currency"
        },
        {
            "key": "first_year",
            "label": "First-year depreciation",
            "format": "currency"
        },
        {
            "key": "pct_of_cost",
            "label": "That year’s charge as a share of cost",
            "format": "percent"
        }
    ],
    "formula": {
        "text": "Straight line = (C − S) ÷ L;  Declining balance = Book × k ÷ L, switching to straight line when that is larger;  SYD = (C − S) × (L − y + 1) ÷ (L(L+1)/2)",
        "variables": {
            "C": "purchase cost",
            "S": "salvage value",
            "L": "useful life in years",
            "k": "2 for double declining, 1.5 for 150%",
            "y": "year number"
        }
    },
    "worked_example": {
        "inputs": {
            "cost": "50000",
            "salvage": "5000",
            "life": "10",
            "method": "ddb",
            "year": "3",
            "currency": "USD"
        },
        "steps": [
            "Double declining rate = 2 ÷ 10 = 20% of book value.",
            "Year 1: 50,000 × 20% = 10,000; year 2: 40,000 × 20% = 8,000.",
            "Year 3: 32,000 × 20% = 6,400, leaving a book value of 25,600."
        ],
        "result": "By double declining balance, a 50,000 machine is charged 6,400 in year 3 and has a book value of 25,600 at the end of it."
    },
    "interpretation": "Machinery loses value fastest in its early years, which declining-balance methods reflect better than straight line. For cost-of-ownership budgets, add interest on the money tied up, insurance and housing to the depreciation.",
    "assumptions": [
        "Full-year depreciation from year 1, with no partial first year.",
        "Declining balance switches to straight line when that gives the larger charge, so the book value reaches salvage at the end of the life."
    ],
    "limitations": [
        "Tax depreciation systems (such as MACRS in the US or capital allowances in the UK) have their own rates and conventions and are not applied."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "Which method should I use?",
            "answer": "For management accounts, choose the one that best matches how the machine loses market value, often declining balance. For tax, use the method your tax authority prescribes."
        },
        {
            "question": "How do I estimate salvage value?",
            "answer": "Look at auction and dealer prices for the same model at the age you expect to trade it in."
        }
    ],
    "sources": [],
    "related": [
        {
            "name": "Agricultural Loan Break Even Calculator",
            "url": "https://calculators.geekmidst.com/calculators/agricultural-loan-break-even-calculator"
        },
        {
            "name": "Farm Labor Cost Calculator",
            "url": "https://calculators.geekmidst.com/calculators/farm-labor-cost-calculator"
        },
        {
            "name": "Loan Amortization Calculator",
            "url": "https://calculators.geekmidst.com/calculators/loan-amortization-calculator"
        }
    ],
    "disclaimer": "This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.",
    "publisher": "GM¹X CalcVerse"
}