Build a depreciation schedule using straight-line or accelerated methods.
Calculated instantly in your browser.
How is depreciation calculated?
Straight-line depreciation is (cost − salvage) ÷ life each year. Double-declining balance is book value × 2⁄life, and sum-of-years-digits is (cost − salvage) × remaining-life ÷ sum-of-years. Depreciation never takes book value below salvage. Example: a $10,000 asset with $1,000 salvage over 5 years depreciates $1,800 a year straight-line, ending at a $1,000 book value.
Understanding your result
Straight-line writes off an equal amount each year. Double-declining and sum-of-years-digits are accelerated methods that take more depreciation early on, which can better match how some assets lose value. All three stop at the salvage value.
Formula and method
Straight-line: (cost − salvage) ÷ life each year. Double-declining: book value × 2⁄life. Sum-of-years digits: (cost − salvage) × remaining-life ÷ sum-of-years. Depreciation never takes book value below salvage.
Assumptions and limitations
This schedule is a general accounting estimate. It applies the method and useful life you enter and cannot know the accepted lives, conventions or rules where you operate, which often differ for tax versus book purposes. It ignores impairment, disposals and part-year timing. Confirm figures with an accountant before filing.
Worked example
A $10,000 asset with $1,000 salvage over 5 years depreciates $1,800 a year straight-line, ending at a $1,000 book value.
How to use this tool
- Enter the asset cost and salvage value.
- Enter the useful life in years and pick a method.
- Read the schedule and download the CSV.
Common mistakes to avoid
- Setting the salvage value higher than the cost.
- Expecting double-declining to reach exactly zero — it stops at salvage.
About the Depreciation Calculator
The Depreciation Calculator spreads the cost of an asset over its useful life. Enter the cost, salvage value and life, choose a method, and get the annual depreciation, a full year-by-year schedule, the book value over time and a CSV export.
Who should use this tool
Small-business owners, bookkeepers, accountants and students learning depreciation methods.
Benefits
- Three standard methods in one tool.
- Full year-by-year schedule with accumulated totals.
- Book-value chart over the asset’s life.
- Download the schedule as CSV.
Practical use cases
- Depreciating equipment for the books.
- Comparing straight-line vs accelerated write-off.
- Estimating an asset’s book value in year three.
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Frequently asked questions
Which depreciation method should I use?
Straight-line is simplest and common for reporting; accelerated methods (double-declining, sum-of-years) suit assets that lose most value early. Tax rules may dictate the method — check your jurisdiction.
What is salvage value?
It is the estimated worth of the asset at the end of its useful life. Depreciation is applied to the cost minus the salvage value.
Is book depreciation the same as tax depreciation?
Often not. The schedule here follows the method and life you choose, but many jurisdictions set their own required lives, conventions and accelerated systems for tax. Businesses frequently keep one figure for accounts and a different one for tax, so verify the correct basis for your purpose.