Depreciation Calculator
Calculate straight-line or double declining balance depreciation for a business asset, with a full year-by-year schedule.
Year 1 depreciation expense
$4,500.00
What Your Result Means
Depreciation expense is how much of an asset's value you can write off each year for accounting or tax purposes. The schedule shows the expense, accumulated depreciation, and remaining book value for every year of the asset's useful life.
How It Is Calculated
Straight-Line: Annual Expense = (Cost - Salvage Value) / Useful Life
Declining Balance: Annual Expense = Book Value × (2 / Useful Life)
Worked Example
A $50,000 asset with a $5,000 salvage value and 10-year useful life depreciates $4,500/year under the straight-line method, or $10,000 in year 1 under double declining balance (which front-loads larger expenses in earlier years).
Important Assumptions
- Straight-line spreads the expense evenly every year. Declining balance front-loads larger deductions early and tapers off, switching to straight-line near the end if needed to reach salvage value.
- Consult a tax professional - actual tax depreciation rules (like MACRS in the US) may differ from these standard accounting methods.
Frequently Asked Questions
- Which method should I use?
- Straight-line is simplest and most common for financial reporting. Declining balance is often used when an asset loses value faster in its early years (like vehicles or technology) or for tax advantages.
- What is salvage value?
- The estimated resale or scrap value of the asset at the end of its useful life - the amount you expect to recover even after full depreciation.
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Methodology
This calculator uses standard GAAP-compatible straight-line and double declining balance formulas. See our methodology page for details.
Results depend entirely on the assumptions and figures you enter. Actual business performance may differ. This calculator does not provide accounting, tax, or legal advice.