Depreciation Calculator

Calculate asset depreciation using Straight-Line, Declining Balance, Double Declining Balance, and Sum-of-Years' Digits methods. Generate full depreciation schedules instantly.

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4 Depreciation Methods

Calculate depreciation using Straight-Line, Declining Balance, Double Declining Balance, or Sum-of-Years' Digits methods.

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Full Depreciation Schedule

Get a year-by-year breakdown showing beginning value, annual depreciation, accumulated depreciation, and ending book value.

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Frequently Asked Questions

What is depreciation?
Depreciation is the accounting method of allocating the cost of a tangible asset over its useful life. It reflects the decrease in value as an asset ages, wears out, or becomes obsolete. Businesses use depreciation to expense the cost of equipment, vehicles, buildings, and other assets over time rather than all at once.
What is the difference between Straight-Line and Declining Balance?
Straight-Line depreciation spreads the cost evenly over the asset's useful life, resulting in the same expense each year. Declining Balance applies a fixed percentage to the remaining book value each year, producing higher depreciation in the early years and lower amounts later. The accelerated method is useful when assets lose more value early in their life.
What is salvage value?
Salvage value (also called residual value or scrap value) is the estimated amount an asset will be worth at the end of its useful life. It represents the expected resale or trade-in value after the asset is fully depreciated. The depreciable amount equals the asset's cost minus its salvage value.
When should I use Double Declining Balance?
Double Declining Balance (DDB) is best suited for assets that lose value quickly in the first few years, such as vehicles, computers, and technology equipment. It allows you to take larger deductions early on, which can be beneficial for tax planning. The depreciation rate is double the straight-line rate applied to the remaining book value.
How does the Sum-of-Years' Digits method work?
The Sum-of-Years' Digits (SYD) method is an accelerated depreciation technique. First, add up all the digits of the useful life years. For a 5-year asset, that's 1+2+3+4+5 = 15. Each year's depreciation fraction uses the remaining life as the numerator and the sum as the denominator. Year 1 gets 5/15, Year 2 gets 4/15, and so on, applied to the depreciable amount.