What is Depreciation Calculator?

Depreciation Calculator computes how an asset loses value over time using straight-line, declining balance, sum-of-years, MACRS, or units-of-production methods. Compare the main methods side by side, watch the book value curve, and export the full schedule for accounting and tax planning.

Enter cost, salvage value, and useful life, then pick a method: straight-line spreads the loss evenly, double-declining-balance front-loads it (and you can set the multiplier to 150% or 200%), and sum-of-years' digits sits between the two. MACRS applies the IRS Publication 946 recovery rates for a chosen property class, and units-of-production ties depreciation to usage instead of calendar years. A side-by-side panel shows Year 1 expense, total depreciation, and final book value for the three calendar methods, and a line chart plots how book value falls each year toward the salvage line. The full schedule, with beginning book value, depreciation, accumulated total, and remaining book value per row, exports as CSV.

How to use

1. Enter the asset cost, salvage value, and useful life in years.
2. Choose a depreciation method: straight-line, double declining balance, sum-of-years digits, MACRS, or units of production.
3. View the year-by-year depreciation schedule and download it as CSV for your records.

When to use

• Posting depreciation entries in a small-business or sole-trader bookkeeping spreadsheet.
• Pricing a used vehicle or piece of equipment based on a remaining book value.
• Comparing methods to see which one matches how the asset is actually losing value.

Result

A $50,000 delivery truck with $5,000 salvage value over 7 years shows $6,428.57/year straight-line depreciation.

FAQ

Which depreciation method should I pick?

Use straight-line for buildings, office furniture, and anything that wears evenly. Double-declining-balance fits laptops, vehicles, and machinery that lose most of their value in the first few years. Sum-of-years' digits is a milder front-loaded option. Pick MACRS if you need US federal tax figures, or units-of-production when wear tracks usage rather than time.

What is salvage value and how do I estimate it?

Salvage value is what you expect to recover when the asset is finally retired, either by resale or scrap. For computers, 0 to 10 percent of cost is realistic. For vehicles, look at auction prices for the same model at the target age and round down.

Why does double-declining-balance never reach exactly the salvage value in the last row?

The method applies a fixed percentage to a shrinking book value, so mathematically it approaches salvage asymptotically. The schedule caps the final year so book value lands exactly on the salvage figure, matching how accountants would record the disposal in the last period.

Is the result tax-deductible the same way for everyone?

Not exactly. The MACRS option here follows IRS Publication 946 GDS rates, but real filings also involve Section 179, bonus depreciation, and listed-property limits this tool doesn't model. Other countries use their own systems: capital allowances in the United Kingdom, or country-specific schedules. Treat the output as a working estimate and confirm deductible amounts against the local tax code.

Can I model a partial first year if I bought the asset mid-year?

Yes. Set the first-year convention to Half-year or By purchase month. The calculator prorates Year 1 for you and rolls the leftover depreciation into an extra final period, so the schedule still adds up to the full depreciable amount.

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