Depreciation Calculator

Calculate asset depreciation using straight-line or double-declining balance methods. Generate a complete depreciation schedule with annual breakdowns.

Worked example: straight-line method

Asset cost $10,000, salvage value $2,000, useful life 4 years. Straight-line depreciation spreads the depreciable amount (cost minus salvage) evenly across every year:

Annual depreciation = (10,000 − 2,000) / 4 = 2,000 per year
YearBeginning valueDepreciationEnding value
1$10,000.00$2,000.00$8,000.00
2$8,000.00$2,000.00$6,000.00
3$6,000.00$2,000.00$4,000.00
4$4,000.00$2,000.00$2,000.00

Total depreciation over the 4 years is $8,000, and the asset ends exactly at its $2,000 salvage value.

How double-declining balance differs

Instead of a flat annual amount, double-declining balance applies a fixed rate (2 ÷ useful life) to the asset's current book value each year, so the dollar amount shrinks over time. With the same 4-year life, the rate is 2/4 = 50%: year one depreciation would be 50% of $10,000 = $5,000, year two 50% of the new $5,000 balance = $2,500, and so on. The calculator automatically switches to straight-line for the remaining years if that would depreciate faster than the declining-balance formula, and it stops depreciating once book value reaches the salvage floor — it never depreciates below salvage value.

What this doesn't account for

Neither method here reflects tax depreciation rules like MACRS, bonus depreciation, or Section 179 deductions — those follow IRS-specific schedules, not straight accounting formulas. This tool is for basic book-value tracking, not tax filing.