1. Enter Asset Details
Add the original asset cost, expected salvage value, useful life, and the year you want to calculate.
Asset Value Planning Tool
Depreciation Calculator
Calculate annual depreciation, accumulated depreciation, and remaining book value using straight-line, declining balance, sum-of-years' digits, or units-of-production methods.
Calculate Asset Depreciation
Enter the asset information to generate a complete schedule.
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Please enter valid values.
Your Results
Straight-Line
Remaining book value
$41,000.00
Book value after year 1
Current depreciation
$9,000.00
Accumulated depreciation
$9,000.00
Depreciable amount
$45,000.00
Value depreciated
20.00%
Depreciation progress
20.00%
Depreciation Schedule
| Year | Beginning Value | Depreciation | Accumulated | Ending Book Value |
|---|
Simple Process
How the Depreciation Calculator Works
The calculator estimates how much value an asset loses during its useful life based on the depreciation method and financial details you provide.
2. Select a Method
Choose straight-line, declining balance, double declining, sum-of-years' digits, or units of production.
3. Review the Schedule
See annual depreciation, accumulated depreciation, and ending book value for every year of the asset's useful life.
What Is Depreciation?
Depreciation is an accounting method used to allocate the cost of a long-term asset over the period in which it is expected to be used. Equipment, vehicles, machinery, furniture, computers, and buildings are common examples of depreciable assets.
Rather than recording the entire cost as an expense immediately, depreciation spreads the expense across the asset's useful life. This helps businesses match the asset's cost with the revenue it helps generate.
Straight-Line Depreciation
Straight-line depreciation assigns an equal depreciation expense to every year of an asset's useful life.
Annual Depreciation = (Asset Cost − Salvage Value) ÷ Useful Life
For example, an asset costing $50,000 with a $5,000 salvage value and a five-year useful life has annual straight-line depreciation of $9,000.
Declining Balance Depreciation
The declining balance method calculates depreciation using the asset's book value at the beginning of each year. This produces a larger expense during early years and a smaller expense during later years.
Annual Depreciation = Beginning Book Value × Depreciation Rate
Double Declining Balance
Double declining balance is an accelerated method that normally applies twice the straight-line depreciation rate to the asset's beginning book value.
Double Declining Rate = 2 ÷ Useful Life
Sum-of-Years' Digits Method
The sum-of-years' digits method is another accelerated depreciation method. It applies a decreasing fraction to the asset's depreciable amount each year.
Units-of-Production Method
Units-of-production depreciation is based on actual asset usage rather than the passage of time. It is often suitable for machinery, production equipment, and other assets whose wear depends on output.
Depreciation = Depreciation Per Unit × Units Produced
Comparison of Depreciation Methods
| Method | Expense Pattern | Common Use |
|---|---|---|
| Straight-Line | Equal expense each year | Furniture, buildings, office equipment |
| Declining Balance | Higher expense in early years | Technology and rapidly aging assets |
| Double Declining | Strong accelerated depreciation | Vehicles, computers, and machinery |
| Sum-of-Years' Digits | Gradually decreasing expense | Assets that are more productive when new |
| Units of Production | Expense based on actual usage | Manufacturing and production equipment |
Asset Cost, Salvage Value, and Useful Life
Asset cost is the total amount paid to acquire and prepare an asset for use. Salvage value is the estimated value remaining at the end of the asset's useful life. Useful life is the estimated period during which the asset will provide economic value.
Important:
This calculator provides general estimates. Tax depreciation rules,
allowable methods, asset classes, and recovery periods vary by country
and jurisdiction. Consult a qualified accountant or tax professional
before making financial or tax decisions.
Common Questions
Depreciation Calculator FAQs
Find answers to common questions about depreciation calculations, asset value, and depreciation methods.
Depreciation is the systematic reduction of an asset's accounting value over its estimated useful life.
Straight-line depreciation is commonly used when an asset loses value evenly. Accelerated methods may be more suitable when an asset loses more value or provides more benefit during its early years.
Yes. You can enter zero when the asset is expected to have no remaining value at the end of its useful life.
Under normal depreciation calculations, the asset's book value should not fall below its estimated salvage value.
No. Accounting depreciation follows a selected calculation method. Actual market value depends on demand, condition, age, location, technology, and other economic factors.
Accumulated depreciation is the total depreciation recorded for an asset from the date it was placed in service through the current calculation period.
The tool can provide a general estimate, but official tax depreciation may require specific asset classes, recovery periods, conventions, and legally approved methods.