Depreciation Calculator
Calculate yearly depreciation of an asset using the straight-line and double-declining balance methods.
How the depreciation calculator works
Depreciation spreads the cost of an asset over its useful life. Enter the cost, the value you expect it to have at the end (salvage value) and the number of years. The calculator shows straight-line depreciation, which is the same every year, and double-declining balance, which writes off more in the early years.
The formulas
Example: A $20,000 asset with a $2,000 salvage value and a 5 year life depreciates by $3,600.00 a year with the straight-line method. With double-declining balance, year 1 is $8,000.00 and year 2 is $4,800.00.
Tax depreciation rules for businesses, such as MACRS and Section 179, are different from these accounting methods. Ask your accountant which method applies to you.
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Frequently asked questions
What is the straight-line depreciation formula?
Subtract the salvage value from the cost and divide by the useful life in years.
What is double-declining balance depreciation?
An accelerated method that applies twice the straight-line rate to the remaining book value each year, so early years have larger deductions.
What is salvage value?
The estimated value of an asset at the end of its useful life.
Is this the same as tax depreciation?
Not exactly. Tax rules like MACRS use set tables and recovery periods.
Which depreciation method is better?
Straight-line is simpler and steady. Accelerated methods give bigger deductions sooner. The right choice depends on your accounting and tax rules.
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