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Depreciation Calculator

Calculate how an asset loses value over its useful life. Enter the cost, salvage value and life, choose a method, and get a year-by-year depreciation schedule with book values, or compare every method side by side.

$
$
years
%

150% = 1.5 × the straight-line rate.

Standard practice so the asset reaches salvage value.

Labels the schedule with calendar years.

Enter your values to see the result.
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How to use the Depreciation Calculator

  1. Enter the asset cost and its expected salvage value at the end.
  2. Enter the useful life in years.
  3. Choose a method, or Compare all methods.
  4. For declining balance, set the rate and decide whether to switch to straight-line.
  5. Press Calculate to see the schedule, book values and chart.

Depreciation formulas

  • Straight-line: (cost − salvage) ÷ useful life, the same every year.
  • Declining balance: book value × (rate ÷ life). 200% = double declining balance, 150% is also common.
  • Sum-of-the-years' digits: (cost − salvage) × remaining life ÷ (n × (n + 1) ÷ 2).
  • Book value = cost − accumulated depreciation, and it never goes below the salvage value.

Example: $30,000 asset, $3,000 salvage, 5 years

YearStraight-lineDouble declining (with switch)Sum-of-years digits
1$5,400.00$12,000.00$9,000.00
2$5,400.00$7,200.00$7,200.00
3$5,400.00$4,320.00$5,400.00
4$5,400.00$2,592.00$3,600.00
5$5,400.00$888.00$1,800.00

All three methods depreciate the same $27,000 in total; they differ in timing. Double declining balance switches to straight-line in the last years so the book value ends exactly at $3,000.

Frequently asked questions

How do you calculate straight-line depreciation?

Annual depreciation = (cost − salvage value) ÷ useful life. A $30,000 asset with a $3,000 salvage value and a 5-year life depreciates $5,400 a year.

How does double declining balance work?

Each year you multiply the current book value by 2 ÷ useful life. For a 5-year asset that is 40% of the book value each year, so the first year of a $30,000 asset is $12,000. Depreciation stops when the book value reaches the salvage value.

What is sum-of-the-years' digits?

Add the years of the useful life (for 5 years: 1+2+3+4+5 = 15). Year 1 depreciation is 5/15 of the depreciable amount, year 2 is 4/15 and so on. It front-loads depreciation, but less aggressively than double declining.

Why switch from declining balance to straight-line?

Declining balance alone never quite reaches the salvage value. Switching to straight-line on the remaining value once that gives the larger amount makes the asset reach its salvage value exactly at the end of its life.

Which depreciation method should I use?

Straight-line is the simplest and most common for financial statements. Accelerated methods suit assets that lose value fastest when new, such as vehicles and computers. Tax rules may require a specific method.

Is this the same as MACRS for US taxes?

No. MACRS uses IRS recovery periods, a half-year or mid-quarter convention and no salvage value. This calculator shows standard book depreciation methods; use IRS Publication 946 or tax software for MACRS.

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