Depreciation Calculator
Calculate depreciation with straight line, declining balance, double declining balance, sum-of-years digits or units of production. Get a year-by-year book value schedule, handle a partial first year, and copy it as CSV.
Leave blank for 0.
Leave blank for a full first year.
Enter the asset cost and its useful life to see the depreciation schedule.
About the depreciation calculator
The Depreciation Calculator spreads the cost of an asset over its useful life and shows the result as a year-by-year schedule. Enter what the asset cost, what you expect it to be worth at the end (the salvage value) and how many years you will use it. Pick a method and the table fills in the opening book value, the depreciation expense, the accumulated depreciation and the closing book value for every year.
Five methods are built in: straight line, declining balance with a rate you choose, double declining balance, sum-of-years digits and units of production. Switching between them takes one click, so you can compare how each one front-loads or evens out the expense for the same asset. A partial first year is supported for every method except units of production, which follows usage rather than the calendar.
How to calculate depreciation
Steps
- Enter the Asset cost and, if you expect any resale value, the Salvage value. Leave salvage blank for zero.
- Enter the Useful life in whole years, from 1 to 100.
- If the asset went into service part-way through the first year, enter the months in service (1 to 12). Leave it blank for a full first year.
- Choose the method. Declining balance asks for a yearly rate, double declining balance offers a switch to straight line, and units of production asks for the total units and the units used each year.
- Read the schedule and press Copy as CSV to paste it into a spreadsheet.
The five methods
Formulas
Straight line spreads the same amount over every year.
Declining balance takes a fixed percentage of the opening book value, so the expense falls each year.
Double declining balance is declining balance with a rate of twice the straight-line rate.
Sum-of-years digits weights early years more heavily.
Units of production ties the expense to usage.
Book value never drops below the salvage value. When a declining rate would take it lower, the last amount is capped so the asset stops exactly at salvage.
Worked example: one asset, three methods
A piece of equipment costs 10,000, is worth 1,000 at the end and lasts 5 years, so the depreciable amount is 9,000.
- Straight line: 1,800 each year. Book value falls 8,200, 6,400, 4,600, 2,800 and ends at 1,000.
- Sum-of-years digits: the digits sum to 15, so year 1 is 9,000 x 5/15 = 3,000, then 2,400, 1,800, 1,200 and 600.
- Double declining balance: the rate is 2/5 = 40 percent, giving 4,000, 2,400, 1,440 and 864. After year 4 the book value is 1,296, so the last year is capped at 296 to land on 1,000.
All three methods write off the same 9,000 in total. They differ only in timing, which matters for how profit appears in each year.
Worked example: a partial first year
An asset costing 10,000 with 1,000 salvage and a 5-year life enters service in July, so only 6 months fall in year 1. Straight line gives 1,800 a year, so year 1 is 900 (6/12 of 1,800), years 2 to 5 are 1,800 each, and a sixth year takes the remaining 900. The schedule therefore has six rows, and the total is still 9,000.
Sum-of-years digits shares the same proration. Each year of asset life is split across two fiscal years, so the same asset shows 1,500, 2,700, 2,100, 1,500, 900 and 300.
Units of production
When wear depends on use, such as a press, a vehicle or a drill, enter the total units the asset will produce over its life and the units for each year. With a cost of 10,000, salvage of 1,000 and 90,000 total units, each unit costs 0.10 in depreciation. Years of 20,000, 30,000 and 40,000 units give 2,000, 3,000 and 4,000. If the units you enter add up to less than the total, the schedule ends above salvage and says so.
Accuracy and limits
Amounts are held at full precision and rounded to cents only for display, so the rows add up to the depreciable amount without drift. Tax depreciation, such as MACRS or capital allowances, uses prescribed tables and conventions that differ from these textbook methods, so use this tool for bookkeeping, planning and learning, and check local tax rules for filings.
Privacy
Nothing is uploaded; every calculation runs in your browser and never leaves your device.
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Frequently asked questions
What is depreciation?
Depreciation is the accounting practice of spreading the cost of a long-lived asset over the years it is expected to be useful, instead of recording the whole cost as an expense in the year you buy it. Each year's share is the depreciation expense, and the cost not yet written off is the book value.
Which depreciation methods does this calculator support?
Straight line, declining balance with a rate you choose, double declining balance, sum-of-years digits and units of production. Each one produces a year-by-year schedule with opening book value, depreciation, accumulated depreciation and closing book value.
What is salvage value and can it be zero?
Salvage value is the amount you expect to recover when you sell or scrap the asset at the end of its useful life. It can be zero, and leaving the field blank counts as zero. It must be lower than the cost, because there would be nothing to depreciate otherwise.
How does a partial first year work?
Enter the months the asset was in service during the first year. Year 1 is prorated by months divided by 12, and the schedule gets one extra row at the end for the remaining months, so a 5-year life shows six rows. Straight line and sum-of-years digits split each year of asset life across two fiscal years. Units of production ignores this field because it follows usage.
Why does declining balance not always reach salvage value?
Declining balance takes a percentage of a shrinking book value, so with a low rate the balance can still sit above salvage when the useful life ends. The calculator shows that gap instead of forcing a final adjustment. Double declining balance can either switch to straight line or take the remainder in the last year, so it does land on salvage.
Can I use these results for my tax return?
Treat them as a bookkeeping and planning aid. Tax authorities usually prescribe their own methods, recovery periods and conventions, such as MACRS in the United States or capital allowances elsewhere, and those can differ from the textbook methods here. Check the rules that apply to you or ask an accountant before filing.
Is my data sent anywhere?
No. Every calculation runs in your browser and nothing you type is uploaded or stored on a server. The schedule is built on your device, and the CSV copy goes only to your own clipboard.