Depreciation Calculator
Enter an asset's cost, salvage value and useful life and get a year by year schedule showing the depreciation expense, the accumulated depreciation and the book value. Choose straight-line, declining balance (double declining by default), sum-of-the-years-digits or units of production. Everything runs in your browser.
The same amount every year: (cost - salvage) / life.
| Year | Expense | Accumulated | Book value |
|---|---|---|---|
| 1 | 1,800.00 | 1,800.00 | 8,200.00 |
| 2 | 1,800.00 | 3,600.00 | 6,400.00 |
| 3 | 1,800.00 | 5,400.00 | 4,600.00 |
| 4 | 1,800.00 | 7,200.00 | 2,800.00 |
| 5 | 1,800.00 | 9,000.00 | 1,000.00 |
Depreciation spreads the cost of an asset, less what it is expected to be worth at the end (its salvage value), over its useful life. Straight-line is the simplest and most common. Declining balance and sum-of-the-years-digits take more in the early years. Units of production follows actual use. This is a general accounting schedule for planning and learning, not tax advice: tax rules such as MACRS in the United States use their own tables, so check the rules that apply to you. Amounts are in whole cents and everything is worked out in your browser.
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Math & MoneyAbout the Depreciation Calculator
Depreciation spreads the cost of an asset over the years it is used, less its salvage value, the amount it is expected to be worth at the end. The depreciable amount is the cost minus the salvage value. Straight-line takes the same amount each year: for a cost of 10,000, a salvage value of 1,000 and a life of 5 years, that is 1,800 a year. Declining balance takes a fixed percentage of the remaining book value each year; with a factor of 2 (double declining balance) the rate is twice the straight-line rate, and the same asset gives 4,000, 2,400, 1,440, 864 and 296, where the last year is limited so the book value stops at the salvage value. This tool does not switch to straight-line late in life, the same as the DDB function in spreadsheets, so with a salvage value of zero the book value never quite reaches zero. Sum-of-the-years-digits multiplies the depreciable amount by the years remaining over the sum of the year numbers, which for 5 years gives 3,000, 2,400, 1,800, 1,200 and 600. Units of production divides the depreciable amount by the total units the asset can produce and charges each year for the units used, which suits machines that wear by use rather than by time. Amounts are rounded to whole cents with the last year taking any rounding difference, so the rows always add up. Accounting depreciation is separate from tax depreciation, which follows its own rules and tables such as MACRS in the United States. This is a general calculator for planning and learning, not tax advice.
How do I calculate straight-line depreciation?▾
Subtract the salvage value from the cost and divide by the useful life in years. An asset costing 10,000 with a salvage value of 1,000 and a 5 year life loses 1,800 a year.
What is double declining balance depreciation?▾
It applies twice the straight-line rate to the remaining book value each year, so expenses are largest early and shrink. It never takes the book value below the salvage value.
What is salvage value?▾
The amount an asset is expected to be worth when you stop using it, also called residual value. Depreciation covers only the cost minus this amount.
Which depreciation method should I use?▾
Straight-line is the simplest and the most common. Declining balance and sum-of-the-years-digits suit assets that lose value or usefulness fastest early on. Units of production suits assets worn by use. Your accountant or the tax rules may require a specific method.
Is this the same as tax depreciation?▾
No. This is a general accounting schedule. Tax depreciation, such as MACRS in the United States, has its own tables and conventions, so check the rules that apply to you.
Is my data uploaded?▾
No. The calculation runs in your browser and nothing you enter is sent anywhere.