Depreciation Calculator · Practical guide
Double Declining Balance Depreciation Calculator
Charge twice the straight-line rate against the remaining book value — big expense early, small expense late.
At a glance
Quick answer
Double declining balance depreciation applies twice the straight-line rate to the current book value each year. For a $50,000 asset with a 5-year life, the rate is 2/5 = 40%, so year-one depreciation is $20,000 — more than double the $9,000 straight-line charge.
Interactive tool
Depreciation Calculator
Enter your own values, then compare the result with the examples below.
Results
| Year | Depreciation | Accumulated Depreciation | Book Value |
|---|
How the Method Works
The straight-line rate for a 5-year life is 20% per year. Doubling it gives 40%, but instead of applying it to cost, you apply it to the shrinking book value. Depreciation never pushes book value below salvage value — the calculator enforces that floor automatically.
Example Schedule: $50,000 Cost, $5,000 Salvage, 5 Years
| Year | Depreciation | Book value |
|---|---|---|
| 1 | $20,000 | $30,000 |
| 2 | $12,000 | $18,000 |
| 3 | $7,200 | $10,800 |
| 4 | $4,320 | $6,480 |
| 5 | $1,480 | $5,000 |
Year 5 is capped at $1,480 — the full 40% charge would have pushed book value below the $5,000 salvage floor.
When Double Declining Makes Sense
- Vehicles and computers, which lose most value in the first years.
- Assets whose productivity genuinely declines with age.
- Situations where larger early deductions improve cash flow.
Switch to the Declining Balance tab above and adjust the multiplier if you need 150% or another rate instead of double.
Frequently Asked Questions
Why is it called double declining balance?
It doubles the straight-line rate — 2 divided by useful life — and applies that rate to the declining book value each year instead of the original cost.
Does double declining balance reach salvage value?
Eventually, yes. Because the percentage applies to a shrinking balance, the final years are typically capped so book value lands exactly on salvage, as in the $1,480 year-five example.
Can I use a multiplier other than 2?
Yes. A multiplier of 1.5 gives 150% declining balance, a common alternative. Enter any multiplier in the declining balance tab above.
Is double declining the same as MACRS?
MACRS is built on declining balance concepts — most MACRS classes start at 200% (double) declining balance and switch to straight line partway through. This calculator shows the pure double-declining schedule.