CalcVerse

Depreciation Calculator

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

  • Last updated
  • Formula tested against reference values

Your numbers

Result

Depreciation in the chosen year
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Calculating…

Accumulated depreciation to date
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Book value at the end of that year
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Total depreciable amount
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First-year depreciation as % of cost
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Full table

How to use this calculator

  1. Enter or choose asset cost.
  2. Enter or choose salvage (residual) value.
  3. Enter or choose useful life.
  4. Enter or choose method.
  5. Enter or choose show results for year.
  6. The depreciation in the chosen year updates as you type. Use Copy result or Share to keep it.

Method

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)

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

  1. Double-declining rate = 2 ÷ 5 = 40% of book value.
  2. Years 1–3: 10,000 × 40% = 4,000; 6,000 × 40% = 2,400; 3,600 × 40% = 1,440. Book value is now 2,160.
  3. 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.

In year 4 the asset depreciates by $1,080, leaving a book value of $1,080 that is written off in year 5.

What the result means

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 and limits

  • 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.
  • 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.

Questions

Which method should I use?

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.

Why switch from declining balance to straight-line?

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.