Depreciation Calculator
Calculate straight-line, double-declining, 150% declining or sum-of-years-digits depreciation for a selected year and book value.
- Four depreciation methods in one calculator
- Shows selected-year and accumulated depreciation
- Prevents book value from falling below salvage value
Calculator workspace
Change any assumption and recalculate. Your entries stay in this browser unless you choose to share or copy a result.
What this Depreciation Calculator calculates
Depreciation spreads an asset’s depreciable cost across its useful life, but different methods recognize that cost at different speeds. This calculator puts four common methods in one workspace: straight-line, double-declining balance, 150% declining balance, and sum-of-years’ digits. Enter the year you want to inspect and the result shows that year’s depreciation, accumulated depreciation and ending book value.
The result is intentionally more than a single number. Supporting figures are shown beside the headline answer so you can see which part of the calculation is driving the outcome. This makes the tool useful for scenario testing: change one assumption, calculate again, and compare the supporting values rather than relying on a black-box result.
Formula and calculation method
Method-specific annual depreciation applied to depreciable cost, with ending book value capped at salvage value.
Inputs are validated before calculation and the arithmetic runs locally in the browser. Monetary fields use the selected currency only for display formatting. The calculator does not retrieve bank, payroll, property, medical, market or exchange-rate data from an external service.
How to use it
- Enter values that describe the same scenario and reporting period.
- Keep percentages and units consistent with the labels shown beside each input.
- Select Calculate and review both the headline result and the supporting metrics.
- Change one assumption at a time to understand sensitivity instead of accepting a single scenario.
- Use Copy Result, Share Result or Save Result Image when you need to keep a record of the calculation.
Worked example
For an asset costing 50,000 with a 5,000 salvage value and five-year useful life, straight-line depreciation is even each year. Switch to double-declining balance to see a larger charge early in the life and smaller charges later. Select year two to compare the second-year charge and the book value remaining after that year.
How to interpret the result
A faster depreciation method changes the timing of expense recognition; it does not change the original cash paid for the asset. Book depreciation for financial reporting and tax depreciation can follow different rules. Use the method required by the relevant accounting policy, tax system, asset class and jurisdiction rather than choosing a method solely because it produces a preferred result.
For an important decision, compare the output with original documents, lender or employer terms, supplier information, professional guidance, or other authoritative records relevant to the calculation. Small differences in rates, timing, fees and definitions can materially change a result even when the formula itself is correct.
Important assumptions and limitations
This calculator is a mathematical schedule tool, not tax or accounting advice. It does not model conventions such as half-year or mid-quarter, bonus depreciation, Section 179, asset pools, revaluation, impairment, partial-year ownership, units of production, disposals, tax classes, or changes in useful life or salvage value.
This calculator is for planning, checking, education and general informational use. It is designed to make assumptions visible and calculations reproducible, but it does not replace a contract, disclosure, professional opinion, medical assessment, accounting policy or lending decision.
Frequently asked questions
What is depreciable cost?
Asset cost minus expected salvage value.
Why does declining balance stop at salvage value?
The calculator caps depreciation so the modeled book value does not fall below the entered residual value.
Which method should I use?
Use the method required by your accounting policy or applicable tax rules; the calculator lets you compare the arithmetic.