About this tool
Depreciation Calculator is a free, in-browser accounting tool that builds a full year-by-year depreciation schedule for an asset under three standard methods: straight-line, declining balance (including double declining with factor 2) and sum-of-years-digits.
Straight-line spreads (cost − salvage) evenly over the useful life. Declining balance applies a constant rate (factor ÷ life) to the remaining book value each year, never depreciating below salvage value. Sum-of-years-digits weights early years more: year k depreciates (cost − salvage) × remaining life ÷ (1+2+…+n). The table shows each year's expense, accumulated depreciation and ending book value.
Use it to compare how the methods front-load expense on equipment or vehicles. The methods are generic accounting formulas (no country-specific tax rules like MACRS), and everything is computed locally in your browser.
Frequently asked questions
Which method should I choose?
Straight-line is the simplest and most common for financial reporting; declining balance (typically double, factor 2) front-loads expense for assets that lose value fast; sum-of-years-digits is a middle-ground accelerated method. Tax rules in your country may mandate a specific method.
What is the factor in declining balance?
The annual rate is factor ÷ useful life applied to the remaining book value. Factor 2 gives double declining balance; 1.5 gives 150% declining balance. The factor field is only active for the declining-balance method.
Why doesn't declining balance always reach the salvage value?
Pure declining balance approaches salvage asymptotically; this tool caps each year's expense so book value never drops below salvage, but with a low factor the final book value can remain above salvage. Many firms switch to straight-line mid-life to fully depreciate — this schedule shows the unswitched method.
What are accumulated depreciation and book value?
Accumulated depreciation is the running total of expense to date; book value is original cost minus accumulated depreciation — the asset's remaining carrying value at the end of each year.
More tools