Depreciation Calculator

Calculate asset depreciation schedules using Straight Line, Double Declining Balance (200%), 150% Declining Balance, and Sum-of-Years’ Digits.

5-Year Useful Lifespan Salvage Value: $5,000

Year 1 Depreciation Expense

$9,000.00

Initial year tax write-off / depreciation expense

Total Depreciable Base

$45,000

Original Asset Cost: $50,000

Asset Depreciation Curve

Book value decline vs accumulated depreciation

Book Value

Accumulated Depr.

Asset Depreciation Schedule

Year	Beginning Book Value	Depreciation Expense	Accumulated Depr.	Ending Book Value
Year 1	$50,000	$9,000	$9,000	$41,000
Year 2	$41,000	$9,000	$18,000	$32,000
Year 3	$32,000	$9,000	$27,000	$23,000
Year 4	$23,000	$9,000	$36,000	$14,000
Year 5	$14,000	$9,000	$45,000	$5,000

Understanding Asset Depreciation

In business accounting and tax filings, depreciation allocates the cost of a tangible capital asset (such as machinery, vehicles, computer hardware, or office buildings) over its expected productive life. Rather than expensing the full purchase price in the year acquired, depreciation matches expenses to the revenue the asset helps generate over time.

Straight Line (SL)

Evenly spreads expense over useful life. Formula: (Cost − Salvage) ÷ Life. Simplest and most common.

Double Declining (DDB)

Accelerated method expensing twice the straight-line rate on remaining book value. Ideal for vehicles and tech equipment that lose value rapidly.

Sum-of-Years' Digits

Accelerated method weighting heavier depreciation toward early asset years based on a declining fraction of the digits sum.

Understanding your calculation

Method, example and limitations

How the calculation works

Depreciation allocates an asset cost over a useful life using the selected method. Straight-line annual depreciation equals (cost − salvage value) ÷ years.

Example to check

An asset costing 10,000 with salvage value 1,000 over five years has straight-line depreciation of 1,800 per year.

Before using the result

Accounting depreciation is not the same as market resale value. Tax depreciation may use different schedules, conventions and eligibility rules.

Calculation methodology · Report a result that needs review