Depreciation Calculator
Build a year-by-year depreciation schedule for an asset using straight-line, double-declining-balance, or sum-of-years-digits methods. See how each approach spreads the expense and how fast book value falls toward salvage.
How to Use
- Enter the asset cost — the full purchase price you are depreciating.
- Enter the salvage value — the estimated worth at the end of its useful life (enter 0 if none).
- Enter the useful life in years.
- Choose a method: straight-line (equal each year), double-declining balance (front-loaded), or sum-of-years-digits (accelerated but tapering).
- Read the schedule showing each year's depreciation expense, accumulated depreciation, and remaining book value.
Show Work
Methods
About the Depreciation Calculator
Working on personal-finance and money decisions? The Depreciation Calculator is a free browser tool that gives you the answer in seconds. Build a year-by-year depreciation schedule for an asset using straight-line, double-declining-balance, or sum-of-years-digits methods. See how each approach spreads the expense and how fast book value falls toward salvage.
How it works
Put each value in its box and read the answer as you go. Because it recalculates live, you can play with the inputs to see how each one moves the result — handy for checking your own working or planning ahead. Everything happens on your device, so it is fast and private.
Want the deeper story? The Knowledge Base explains the ideas behind the tools in more detail.
Frequently Asked Questions
Which depreciation method should I use?
Straight-line is the simplest and most common for financial reporting — equal expense each year. Accelerated methods (double-declining balance, sum-of-years-digits) recognize more expense early, which can better match assets that lose value quickly or front-load tax deductions. Your choice should reflect how the asset actually wears and your accounting or tax goals.
What is salvage value?
Salvage (or residual) value is the estimated amount you expect to recover when the asset is retired or sold at the end of its useful life. Straight-line and sum-of-years-digits depreciate the cost down to salvage, while double-declining balance ignores salvage in the formula but should not depreciate book value below it. If you expect nothing at the end, enter 0.
How does double-declining balance differ from straight-line?
Double-declining balance applies double the straight-line rate (2 ÷ life) to the remaining book value each year, so expense is largest in year one and shrinks over time. Straight-line spreads the same total evenly. DDB front-loads the deduction but never dips book value below salvage, often requiring a switch to straight-line in the final years.
Is this the same as MACRS for U.S. taxes?
No. This calculator covers the classic book-depreciation methods. U.S. tax depreciation uses MACRS, which assigns fixed recovery periods and percentage tables and ignores salvage value, plus rules like bonus depreciation and Section 179. Use these figures for financial-statement modeling and estimates — confirm tax depreciation with the IRS tables or a tax professional, as this is not tax advice.
Can I depreciate something for personal use?
Depreciation is an accounting and tax concept for business or income-producing assets, not personal property. It is widely used for equipment, vehicles, machinery, and rental property improvements (land itself is not depreciated). For a personal item you would simply track its market value, not a depreciation schedule.
How do I use the Depreciation Calculator?
Just type your numbers. The answer shows up right away — there is no button to press. Change anything and it updates by itself.
Do I need to install or sign up for anything?
Not at all — it runs in the browser with nothing to install and no account. After it loads once, it even works without an internet connection.
Is my information private?
Yes. Everything happens in your browser. Nothing you type is sent to a server or saved anywhere.
Common Use Cases
Budgeting equipment expense
Spread the cost of machinery or computers across its useful life to forecast annual expense on your books.
Comparing depreciation methods
See side by side how straight-line versus accelerated methods change early-year expense and book value.
Rental property planning
Model depreciation on appliances or improvements to estimate the non-cash deduction against rental income.
Tracking book value over time
Find the remaining book value in any year for asset registers, insurance, or resale decisions.
Small-business financial statements
Generate a clean schedule of annual depreciation expense for your income statement and balance sheet.
Last updated: