Depreciation Calculator
Build a depreciation schedule for equipment, vehicles or other assets. Compare straight-line, double-declining balance and sum-of-the-years'-digits, with yearly depreciation and book value.
First-year depreciation
| Year | Depreciation | Accumulated | Book value |
|---|
How to calculate depreciation
- Enter the asset's cost, the value you expect it to have at the end (salvage), and its useful life in years.
- Choose a method and read the schedule.
- Switch methods to compare how expenses fall across years.
Depreciation methods compared
Straight-line spreads the depreciable amount (cost minus salvage) evenly: the same expense every year. It is the simplest and most common method for financial statements.
Declining balance methods apply a fixed rate to the remaining book value, front-loading expense into the early years when assets usually lose value fastest. Double-declining uses twice the straight-line rate; 150% uses one and a half times. Book value is never taken below salvage, and the schedule switches to straight-line when that gives a larger deduction. Sum-of-the-years' digits is another accelerated method, weighting each year by its remaining life.
Tax depreciation in the US uses MACRS, with IRS-assigned recovery periods and conventions, plus options like Section 179 and bonus depreciation. Those rules differ from these book methods, so use IRS Publication 946 or a tax professional for your tax return.
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Frequently asked questions
Which depreciation method is best?
Straight-line for simplicity and steady expenses; accelerated methods when assets lose value quickly or to match expense with early use.
What is salvage value?
The estimated value of the asset at the end of its useful life. It is not depreciated.
Is this the same as tax depreciation?
No. US tax depreciation uses MACRS tables and rules; this calculator shows standard book methods.
Why does declining balance switch to straight-line?
Late in the life, straight-line on the remaining balance gives a larger expense, so the switch ensures the asset reaches salvage value on time.