Depreciation Calculator

Depreciation calculator

Enter what the asset cost, what it will be worth at the end and how many years you will use it. Pick a method to see each year's depreciation and the book value left.

Depreciation calculator

First-year depreciation

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How it works

Straight-line: D = (cost − salvage) ÷ life

Straight-line spreads the cost evenly. Double declining balance charges twice the straight-line rate on the remaining book value, so early years carry more; the calculator switches to straight-line when that gives more, and stops at the salvage value. Sum of the years' digits also front-loads: with a 5-year life the years take 5/15, 4/15, 3/15, 2/15 and 1/15 of the cost.

Tax rules in each country set which methods and lives are allowed for tax returns. Use this for planning and bookkeeping, and check the official tables before filing.

Common questions

Which depreciation method should I use?

Straight-line is simplest and most common in accounts. Accelerated methods suit assets that lose value fast, such as vehicles and computers, and can bring tax deductions forward where allowed.

What is salvage value?

What you expect to sell the asset for at the end of its useful life. Depreciation stops when the book value reaches it.

How it works

Common questions

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