Depreciation Calculator
Calculate asset depreciation using straight-line, declining balance, double declining balance or sum-of-the-years methods. Useful for accounting and tax planning.
How to use the Depreciation Calculator
- Enter your inputs into the Depreciation Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The depreciation methods
Straight-line: D = (Cost − Salvage) / Life · · · Double-declining: D_k = Book value × (2 / Life)
Each method spreads cost over the asset's useful life differently. Straight-line is constant; declining-balance methods front-load depreciation; sum-of-the-years digits is also accelerated but smoother.
Worked example
A $50,000 machine with $5,000 salvage and 10-year life. Straight-line: D = (50,000 − 5,000)/10 = $4,500/year. Double-declining year 1: 50,000 × 0.20 = $10,000; year 2: 40,000 × 0.20 = $8,000.
Frequently asked questions
Which method should I use for taxes?
US tax law uses MACRS (Modified Accelerated Cost Recovery System) for most business assets — a specific declining-balance variant. Always check with your accountant for tax filings.
What is salvage value?
The estimated value of the asset at the end of its useful life. Some accelerated methods ignore salvage until the book value would otherwise drop below it.
Why use accelerated depreciation?
Accelerated methods reduce taxable income more in early years, deferring tax. Useful for businesses with high upfront capital investment or wanting to match deductions with declining productivity.