Depreciation Calculator
Spread the cost of an asset over its useful life.
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Depreciation Calculator by TheCalcTools
How the Depreciation Calculator works
Enter the cost, expected salvage value and useful life.
Pick straight-line for equal yearly amounts, or double declining balance for larger early deductions.
Choose a year to see that year’s expense and the remaining book value.
The formula
Worked example
Using the default values shown in the calculator:
| Asset cost | $25000 |
|---|---|
| Salvage value | $3000 |
| Useful life (years) | 5 |
| Year to show | 2 |
| Method | Straight-line |
- Straight-line: ($25,000 − $3,000) ÷ 5 = $4,400.00 a year.
- After year 2 accumulated depreciation is $8,800.00, book value $16,200.00.
Result:
| Depreciation in that year | $4,400.00 |
|---|---|
| Book value at year end | $16,200.00 |
| Accumulated depreciation | $8,800.00 |
Frequently asked questions
Which method should I use?
Straight-line is simplest and common in financial reporting. Declining balance fits assets that lose value faster early, like vehicles and computers. Tax rules may require a specific method.
Is this tax advice?
No. Tax depreciation schedules, such as MACRS in the US, follow their own tables.
Sources and further reading
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This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.