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Depreciation Calculator
Book value falls on a schedule, and the method you pick sets the curve. This depreciation calculator builds the full year-by-year schedule under straight-line, declining balance, double declining balance or sum-of-years'-digits. Book methods only — no MACRS, no tax depreciation.
See how this works on a $10,000 asset — 3 real examples
First-year depreciation expense · Straight-line
$0
Total depreciation
$0
Ending book value
$0
Average per year
$0
Book value over the asset’s life
Depreciation scheduleYear-by-year expense, accumulated & book value
| Year | Depreciation expense | Accumulated | Book value |
|---|
How each depreciation method builds the schedule
Every method writes off the same depreciable base = cost − salvage over the useful life, and book value = cost − accumulated depreciation at the end of each year. Only the shape of the annual expense differs:
Straight-line → (cost − salvage) / life
Declining balance → book value × (factor / life)
Double declining → book value × (2 / life)
Sum-of-years’-digits → (remaining life / SYD) × base
Sum-of-years’-digits divides the base by the digit total SYD = life × (life + 1) / 2, weighting the early years most heavily. Declining-balance methods instead apply a fixed rate (factor / life) to the shrinking book value each year; near the end of the life they switch up to the remaining straight-line pace so the book value lands exactly on salvage and never dips below it. If you set a first-year fraction below 1, year one is scaled by that fraction and the leftover is carried into an extra partial year, so the schedule still totals the full base to the cent.
Compliance: these are book depreciation methods only. This tool does not compute MACRS, IRS recovery periods, bonus depreciation, Section 179 or any tax deduction. Use it for financial-statement and book-value planning; consult a tax professional for tax depreciation.
One $10,000 machine, three write-off shapes
A $10,000 asset with $1,000 of salvage value over five years. Every method writes off the same $9,000 — only the timing moves.
The even split: straight-line
year-1 expense$1,800.00
- The same $1,800 lands every year for five years — cost minus salvage, split evenly.
- $5,400 of the $9,000 base is written off by the end of year 3, leaving $4,600 on the books.
- The schedule ends where every method ends: $9,000 depreciated, $1,000 of book value left.
The simplest shape there is: one number, repeated, landing exactly on salvage.
Load this example (opens in a new tab)The steep start: double declining balance
year-1 expense$4,000.00
- Year one takes $4,000 — 40% of the book value, and more than double the straight-line figure.
- Year two applies the same 40% to the remaining $6,000, so the expense shrinks to $2,400.
- By the end of year 3 the book value is down to $2,160, against $4,600 under straight-line.
Same $9,000 total, taken mostly up front — matched to assets that lose value fastest when new.
Load this example (opens in a new tab)The gentle ramp: sum-of-years’-digits
year-1 expense$3,000.00
- The digits 5+4+3+2+1 sum to 15, and year one takes 5/15 of the base: $3,000.
- Each year the expense steps down by $600, from $3,000 to a final $600.
- Its year-3 book value of $2,800 sits between straight-line’s $4,600 and double declining’s $2,160.
Accelerated, but on a gentle ramp — the middle path between the other two curves.
Load this example (opens in a new tab)Illustrations only, not financial advice. Your own rate, taxes and insurance will differ — check with a qualified financial advisor before acting on any of this.
Choosing a depreciation method, in plain English
- Straight-line is the default. Equal expense every year — simplest to book and easiest to explain. Use this straight line depreciation calculator setting unless you have a reason not to.
- Accelerated methods front-load the cost. A declining balance depreciation calculator or double declining balance calculator gives bigger early write-offs, matching assets that lose value fastest when new.
- Sum-of-years’-digits sits in between. Accelerated, but it tapers more gently than double declining balance — a middle ground for assets that fade steadily.
- Salvage value is the floor. Total depreciation is always cost minus salvage; the book value curve above lands there no matter which method you pick.
- The total is identical, only the timing changes. The comparison chart makes this obvious — every curve starts at cost and ends at salvage.
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Frequently asked questions
What is the difference between straight-line, declining balance and sum-of-years’-digits depreciation?
They spread the same total cost across the asset’s life in different shapes. Straight-line writes off an equal amount every year. Declining balance (and its double-declining variant) front-loads the expense — bigger deductions early, tapering off later. Sum-of-years’-digits is also accelerated but declines more gently than double declining balance. All three depreciate down to the same salvage value; only the timing of the expense differs.
How do I calculate straight-line depreciation?
Straight-line depreciation = (cost − salvage value) ÷ useful life. For a $10,000 asset with a $1,000 salvage value and a 5-year life, that is ($10,000 − $1,000) ÷ 5 = $1,800 of depreciation every year. After five years the accumulated depreciation is $9,000 and the book value equals the $1,000 salvage. This is the simplest method and the default in most book-keeping.
How does double declining balance depreciation work?
Double declining balance applies twice the straight-line rate to the remaining book value each year. With a 5-year life the straight-line rate is 20%, so double declining balance uses 40%: year one on a $10,000 asset is $4,000, year two is 40% of the remaining $6,000 = $2,400, and so on. This calculator switches to the straight-line pace over the remaining life near the end so the book value lands exactly on salvage and never dips below it.
What is salvage value and how does it affect the schedule?
Salvage value (also called residual value) is what you expect the asset to be worth at the end of its useful life. Depreciation only ever writes off the depreciable base — cost minus salvage — so a higher salvage value means less total depreciation and a higher ending book value. Declining balance methods stop depreciating once book value reaches salvage, so it acts as a floor.
Does this calculator do MACRS or tax depreciation?
No. This is a book depreciation calculator only — straight-line, declining balance, double declining balance and sum-of-years’-digits. It does not compute MACRS, IRS recovery periods, bonus depreciation, Section 179 or any tax deduction. Use it for financial-statement and book-value planning, and consult a tax professional or IRS guidance for tax depreciation.
How is partial-year (first-year) depreciation handled?
If an asset is placed in service partway through the year, set the first-year fraction below 1 (for example 0.5 for a mid-year purchase). The calculator scales year one by that fraction and carries the remaining portion into an extra partial year at the end of the schedule, so the total depreciation still equals the full depreciable base to the cent.
What is book value and how is it calculated?
Book value is the asset’s remaining value on your books: cost minus accumulated depreciation to date. It starts at the full cost, falls each year by that year’s depreciation expense, and ends at the salvage value. The book-value curve above and the schedule below both use this book value calculator formula — book value = cost − accumulated depreciation.
Disclaimer: these calculators are educational tools, not financial advice. They model your inputs with published formulas, but they cannot know your full situation — for decisions with real stakes, talk to a qualified professional. Formulas and defaults last reviewed .