Depreciation Calculator: Simple and Accurate

Get Started

Use this depreciation calculator to build a clear yearly schedule. Enter your numbers and pick a method. Then get results you can use right away. We refreshed this guide to make each step clearer.

How to Use This Tool

This depreciation calculator supports straight line and double declining balance methods. It needs four inputs. Here is what each field means.

• Asset Cost: The purchase price and setup costs. Enter a number above zero.
• Salvage Value: The value you expect at the end of its life. Enter zero or more. Keep it below the asset cost.
• Useful Life: Years you plan to use the asset. Enter a whole number of at least one.
• Depreciation Method: Pick Straight Line for the same expense each year. Pick Double Declining Balance for higher early expense.

Book value means cost minus accumulated depreciation.

An example loads on page open. You can press Load Example at any time.

Step-by-Step Guide

1. Enter the asset cost in dollars.
2. Enter the salvage value in dollars.
3. Enter the useful life in years.
4. Select a depreciation method.
5. Click Calculate Depreciation to see the schedule.
6. Click Load Example to try sample values.

Why This Depreciation Calculator Works for You

Your results include a table and a summary. Use the table to track the asset each year.

• Year: The year number in the schedule.
• Beginning Book Value: The value at the start of the year.
• Depreciation Expense: The amount recorded for that year.
• Ending Book Value: The value at the end of the year.

The summary lists the initial asset cost. It shows total depreciation. It includes the final book value and salvage value. It confirms the selected method.

Straight Line uses one amount each year. That amount equals asset cost minus salvage value divided by useful life.

Double Declining Balance uses a rate of two divided by useful life. Each year, expense equals the rate times the current book value. The tool switches to straight line later in the schedule when that gives a larger amount. The schedule stops at the salvage value.

Practical Benefits for Everyday Use

This depreciation calculator helps plan and compare methods.

• Compare methods before you buy equipment.
• Build budgets with year by year book values.
• Estimate expense for tax planning with a tax professional.
• Prepare audit support with a clear schedule.
• Teach or learn asset accounting with clean examples.

Summary

Keep these notes in mind as you use the tool.

• Currency displays in United States dollars.
• Values round to two decimals.
• The calculator uses full year rates.
• Useful life uses whole years only.
• Asset cost must be above zero.
• Set salvage value at zero or more, and below the asset cost.
• Useful life must be one year or more.
• Enter numbers only in all fields.
• Results rely on your inputs and choices.
• For tax or accounting advice, speak with a professional.
• An example loads on page open.