Depreciation Calculator
A year-by-year book depreciation schedule by straight line, declining balance, sum of the years’ digits or units of production.
Result
Depreciation in the first year: $10,800.00
Book depreciation only. Tax depreciation follows its own rules and tables, which this page does not apply.
- Book value after the first year
- $49,200.00
- Depreciation in the last year
- $10,800.00
- Total depreciation
- $54,000.00
- Years in the schedule
- 5
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Results are arithmetic estimates based on the assumptions you enter, not accounting, tax, investment or lending advice. Forecasts can be wrong and important decisions should be checked with a qualified adviser. Read the full disclaimer
How to use the Depreciation Calculator
- Choose a method, then enter what the asset cost and what you expect it to be worth at the end.
- Enter its useful life in years, or for units of production, the total units it will produce and the units used each year.
- Read the first year's charge here, and the full year-by-year schedule in the worked steps.
The formulas
With cost C, salvage S, life n years and depreciable amount C − S:
straight line (C − S) ÷ n a yeardeclining balance book value × rate ÷ n, switching to straight line when larger, never below Ssum of the digits (C − S) × years left ÷ (n(n + 1) ÷ 2)units (C − S) × units used in the year ÷ total unitsEvery method depreciates the same total, cost less salvage. They differ only in when. Each year’s charge is rounded to the cent, and the last year takes whatever is left, so the schedule always ends exactly at salvage.
Book value
Book value is the cost less all the depreciation charged so far. It is an accounting figure, not what the asset would sell for. A three-year-old van can be worth more or less than its book value.
What the diagram shows
Book value year by year, from the cost down to salvage. Straight line falls in a straight line; the accelerated methods fall steeply first and then level off.
With your numbers
- Depreciable amount = $60,000.00 − $6,000.00 = $54,000.00
- Year 1: $24,000.00, leaving a book value of $36,000.00
- Year 2: $14,400.00, leaving a book value of $21,600.00
- Year 3: $8,640.00, leaving a book value of $12,960.00
- Year 4: $5,184.00, leaving a book value of $7,776.00
- Year 5: $1,776.00, leaving a book value of $6,000.00
Quick reference
Book depreciation only. Tax depreciation follows its own rules and tables, which this page does not apply.
| Example | Depreciation in the first year |
|---|---|
| 60,000, 6,000 salvage, 5 years, straight line | $10,800.00 |
| Same, double declining balance | $24,000.00 |
| Same, 150% declining balance | $18,000.00 |
| Same, sum of the years’ digits | $18,000.00 |
| Same, by units of production | $16,200.00 |
| 2,400 laptop, no salvage, 3 years | $800.00 |
Common questions about the Depreciation Calculator
- Which method should I use?
- Straight line spreads the cost evenly and suits assets that wear out steadily, like furniture or a building fit-out. Declining balance and sum of the years' digits charge more early, which suits assets that lose value fast, like vehicles and computers. Units of production suits machinery whose wear follows its use. Your accountant or your accounting framework may decide it for you.
- Why does double declining balance end with a small final year?
- Declining balance charges a fixed share of the remaining book value each year, so it never reaches salvage on its own. The page switches to straight line once that gives a larger charge, and stops at salvage. For a 60,000 asset with 6,000 salvage over 5 years, the charges are 24,000, 14,400, 8,640, 5,184 and 1,776.
- Is this my tax deduction?
- No. This is book depreciation for your own accounts. Tax depreciation follows its own rules, such as MACRS in the US, with set lives, conventions for the year of purchase and special first-year allowances. The page does not apply any of them.
- What if I do not expect any salvage value?
- Enter 0. The whole cost is then depreciated over the life.