Depreciation Calculator
Work out an asset's depreciation each year with a full schedule.
Spreading the cost
Depreciation spreads the cost of an asset over its useful life. Straight line takes the same amount each year. The declining balance methods take more in the early years, using a fixed percentage of the remaining book value. Sum of the years’ digits also front-loads the cost, using a falling fraction.
Example
A 10,000 asset with a 1,000 salvage value and a 5-year life loses 1,800 a year on straight line. The double-declining method takes 4,000 in year 1, and the sum of the years’ digits takes 3,000 in year 1. All three end at the 1,000 salvage value.
Accounting and tax rules differ. Tax systems often use their own schedules, such as MACRS in the US, which this tool does not cover. Use it for accounting and planning, and check your own tax rules.
Frequently asked questions
Which method should I use?
It depends on your accounting rules and how the asset loses value. Straight line is the simplest and the most common.
What is salvage value?
What you expect the asset to be worth at the end of its life.
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