Depreciation Calculator
Calculate straight-line or declining-balance depreciation with a full year-by-year book value schedule. Free asset depreciation calculator.
About the Depreciation Calculator
Depreciation spreads the cost of an asset over its useful life, matching the expense to the years it is used. This free depreciation calculator supports the two most common methods — straight-line and declining balance — and produces a full schedule showing each year's depreciation expense, accumulated depreciation and remaining book value.
Straight-line depreciation charges the same amount every year: (cost − salvage value) ÷ useful life. Declining balance is accelerated — it applies a fixed percentage to the shrinking book value each year, so more of the cost is written off early. The calculator flags the switch point and never lets book value drop below salvage value.
Accountants, small business owners and students preparing financial statements use depreciation to report asset values and reduce taxable profit. Everything computes in your browser with no signup.
How to Use the Depreciation Calculator
- 1Enter the asset cost, its salvage (residual) value and its useful life in years.
- 2Choose the method: straight-line or declining balance.
- 3For declining balance, set the rate (for example 200% for double-declining).
- 4Read the annual expense and the full book-value schedule.
Frequently Asked Questions
How do I calculate straight-line depreciation?
Subtract the salvage value from the cost and divide by the useful life. An asset costing 100,000 with a 10,000 salvage value over 5 years depreciates by (100,000 − 10,000) ÷ 5 = 18,000 per year, every year.
What is declining-balance depreciation?
It applies a constant rate to the book value each year, so expense is highest early on. With double-declining balance on a 100,000 asset over 5 years, the rate is 2 ÷ 5 = 40%, giving 40,000 in year 1, then 24,000 (40% of 60,000) in year 2, and so on.
Which depreciation method should I use?
Straight-line suits assets that wear evenly, like furniture. Declining balance suits assets that lose value fast early, like vehicles and computers. Tax rules in your country may mandate a specific method, so check local regulations.
What is salvage value?
Salvage (or residual) value is what you expect the asset to be worth at the end of its useful life. Depreciation never reduces book value below salvage value, because that residual amount is not consumed by use.
What is book value?
Book value is the asset's cost minus accumulated depreciation to date. After two years of 18,000 straight-line depreciation on a 100,000 asset, accumulated depreciation is 36,000 and the book value is 64,000.