# Depreciation Calculator

> Build a depreciation schedule by straight-line, double-declining balance, 150% declining balance or sum-of-the-years’ digits, with book value each year.

Category: Business & tax · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/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.

## Inputs
- Asset cost (default 10000)
- Salvage (residual) value (default 1000; optional)
- Useful life (unit years; default 5)
- Method (options: Straight-line, Double-declining balance (200%), 150% declining balance, Sum-of-the-years’ digits; default sl)
- Show results for year (default 1)
- Currency

## Results
- Depreciation in the chosen year
- Accumulated depreciation to date
- Book value at the end of that year
- Total depreciable amount
- First-year depreciation as % of cost

## Formula

```
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)
```

Where:
- 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.

**Result:** 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.

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Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/depreciation-calculator