Depreciation Calculator

Calculate depreciation schedules using straight-line or double-declining balance methods.

Overview

This tool calculates asset depreciation. It uses either the straight-line or double-declining balance method.

How It Works

You enter three numbers: asset cost, salvage value, and useful life in years. Then you choose a depreciation method.

How to Use This Tool

  1. Type the asset cost. Use a realistic amount above the salvage value. For example, 50000.
  2. Enter the salvage value. It must be less than the asset cost. For example, 5000.
  3. Enter the asset's useful life in years. The number must be at least 1.
  4. Pick your depreciation method from the two options.
  5. Click the Calculate Depreciation button to see your schedule.

Input Fields Explained

The Asset Cost field is for the purchase price of the asset. It must be a positive number.

The Salvage Value is the estimated worth of the asset after its use. It must be lower than the asset cost.

The Useful Life field shows how many years you plan to use the asset.

The Depreciation Method lets you choose between two methods. The straight-line method spreads the depreciation evenly over the years. The double-declining balance method applies more depreciation in the initial years.

Understanding the Output

The results appear in a table. It lists each year with the beginning book value, the depreciation expense, and the ending book value.

A summary below the table shows the initial asset cost, the total depreciation, the final book value, and the salvage value.

Limitations and Special Notes

Enter valid numbers in all fields. The tool shows an error if any number is missing or incorrect.

The calculator works for full years only. Partial years are not calculated.

Common Use Cases

Business owners can use this tool to plan budgets. Accountants may use it for creating depreciation schedules. It also helps anyone managing personal finances.

Summary

This calculator turns complex math into clear results. It accepts cost, salvage value, and useful life. After you pick a method, it shows a full schedule. Give it a try and see how it supports your financial planning.