Depreciation Calculator

Calculate asset depreciation with three common methods and a full schedule

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Annual Depreciation (Year 1)

About the Depreciation Calculator

Our Depreciation Calculator supports three common methods: straight-line, declining balance (150%), and double-declining balance. Enter the asset cost, salvage value, and useful life to generate a complete year-by-year depreciation schedule with book values. Depreciation is a fundamental accounting concept that allows businesses to spread an asset's cost over its useful life for both financial reporting and tax purposes.

Choosing the right depreciation method depends on how the asset is used. Straight-line provides consistent expense each year, while accelerated methods like double-declining balance better match expenses for assets that lose value quickly, such as vehicles, computers, and other technology equipment.

How to Use This Calculator

  1. Enter the asset's initial cost, estimated salvage value at end of life, and useful life in years.
  2. Select a depreciation method: Straight-Line, Declining Balance (150%), or Double-Declining Balance.
  3. Click Calculate to see the annual depreciation and full schedule for the entire useful life.

The Formula

Straight-Line: Annual = (Cost − Salvage) / Life
Double-Declining: Rate = 2 / Life; Annual = Book Value × Rate

Frequently Asked Questions

What is the difference between straight-line and accelerated depreciation?

Straight-line allocates equal expense each year. Accelerated methods like double-declining balance allocate more expense in early years, which is useful for assets that lose value quickly or provide more value early in their life.

Can land be depreciated?

No, land is not depreciable because it does not wear out or become obsolete. Only improvements to land, such as buildings, parking lots, and landscaping, can be depreciated over their useful lives.