Depreciation Calculator
Calculate asset depreciation using multiple methods including straight-line, declining balance, and sum-of-years digits. Generate complete depreciation schedules and track book value over time.
Original purchase price of the asset
Estimated value at end of useful life
Expected lifespan of the asset
Multiple Methods
Support for straight-line, declining balance, and sum-of-years digits depreciation methods.
Complete Schedules
View year-by-year depreciation expenses and book values with CSV export capability.
100% Private
All calculations happen in your browser. Your asset data is never sent to any server.
Depreciation Methods Explained
1. Straight-Line Depreciation
Annual Depreciation = (Asset Cost - Salvage Value) / Useful Life
The simplest method that spreads the depreciable amount evenly across all years. Best for assets that provide consistent value throughout their useful life.
2. Declining Balance Depreciation
Annual Depreciation = Book Value × Declining Rate
An accelerated method that applies a fixed percentage to the declining book value each year. Results in higher depreciation in early years.
Common rates:
- • 150% Declining Balance: 1.5 × (1 / Useful Life)
- • 200% (Double) Declining Balance: 2 × (1 / Useful Life)
3. Sum-of-Years Digits (SYD)
Annual Depreciation = (Remaining Life / Sum of Years) × Depreciable Amount
An accelerated method where depreciation decreases each year based on the remaining useful life. For a 5-year asset, the sum is 1+2+3+4+5=15.
Example (5-year asset):
- • Year 1: 5/15 of depreciable amount
- • Year 2: 4/15 of depreciable amount
- • Year 3: 3/15 of depreciable amount
- • Year 4: 2/15 of depreciable amount
- • Year 5: 1/15 of depreciable amount
Frequently Asked Questions
What is asset depreciation?
Asset depreciation is the systematic allocation of an asset's cost over its useful life. It represents the reduction in value of an asset over time due to wear and tear, obsolescence, or age. Depreciation is a non-cash expense that reduces taxable income.
What depreciation methods are available?
This calculator supports three common methods: Straight-Line (equal depreciation each year), Declining Balance (higher depreciation in early years using a fixed percentage), and Sum-of-Years Digits (accelerated depreciation based on remaining useful life).
What is salvage value?
Salvage value (also called residual value or scrap value) is the estimated value of an asset at the end of its useful life. It's the amount you expect to recover when disposing of or selling the asset after it's fully depreciated.
Which depreciation method should I use?
The choice depends on your situation. Straight-line is simplest and most common for financial reporting. Accelerated methods (declining balance, sum-of-years) provide larger deductions early on, which can be beneficial for tax purposes and assets that lose value quickly.
What is double declining balance?
Double declining balance is a declining balance method that uses a rate of 200% (double the straight-line rate). For a 5-year asset, the straight-line rate is 20%, so double declining uses 40% applied to the remaining book value each year.
Is my data private?
Yes, absolutely! All calculations happen entirely in your browser. Your asset and financial information is never sent to any server, ensuring complete privacy and security.