Depreciation Calculator
Calculate asset depreciation using straight-line, declining balance, or sum-of-years-digits methods.
Results
| Year | Depreciation | Accumulated Depreciation | Book Value |
|---|
What is a Depreciation Calculator?
A depreciation calculator allocates the cost of a tangible asset over its useful life. It supports three common accounting methods: straight-line, declining balance, and sum-of-years-digits. The result includes an annual schedule showing depreciation expense and remaining book value.
How to Use This Calculator
- Select the depreciation method tab: Straight Line, Declining Balance, or Sum of Years' Digits.
- Enter the asset's original cost and estimated salvage value.
- Input the useful life in years.
- For declining balance, you may adjust the rate multiplier (default is 2 for double-declining).
- Click Calculate to view annual depreciation and a year-by-year schedule.
Frequently Asked Questions
What is straight-line depreciation?
Straight-line depreciation spreads the same amount of depreciation expense across each year of the asset's useful life. It is the simplest and most commonly used method.
What is declining balance depreciation?
Declining balance applies a fixed percentage to the remaining book value each year, resulting in higher depreciation early in the asset's life. Double-declining uses twice the straight-line rate.
What is sum-of-years-digits depreciation?
This accelerated method multiplies the depreciable base by a fraction that declines each year. The fraction is the remaining life divided by the sum of the years' digits.
Can book value fall below salvage value?
No. Depreciation stops when book value reaches salvage value. The calculator enforces this limit for all methods.