Depreciation calculator
Yearly depreciation and book value by straight-line or declining balance.
About this calculator
This depreciation calculator spreads the cost of an asset over its useful life. Enter the cost, the salvage value at the end and the number of years.
Choose straight-line, double declining balance or sum of the years' digits to see a full year-by-year schedule.
How it works
Straight line spreads (cost − salvage) evenly over the years. Double declining balance takes 2 ÷ life of the remaining book value each year. Sum of the years’ digits takes a falling fraction: life ÷ (1 + 2 + … + life) in year 1, and so on.
Last reviewed:
Worked example
- Asset cost: $30,000
- Salvage value: $5,000
- Useful life: 5 years
- Method: Straight line
Depreciation each year: $5,000.00
Common questions
What is straight-line depreciation?
The same amount every year: (cost − salvage value) ÷ useful life. It's the simplest and most common method.
Why use declining balance?
It puts more of the cost in the early years, which suits assets that lose value quickly, such as vehicles and computers.
Is this the same as tax depreciation?
Not always. Tax rules have their own methods and lives, such as MACRS in the US. Check with an accountant for tax returns.
Sources and further reading
The story behind it
Where the idea came from: Railways in the 1800s were among the first businesses to account for depreciation, spreading the cost of tracks and engines over their working life.
Railways spent huge sums on equipment that lasted for decades, and charging it all in one year made profits swing wildly. Spreading the cost gave a truer picture, and depreciation became a basic rule of accounting.
Why you can trust this calculator
- It runs in your browser. Nothing you type into it is sent anywhere.
- The method is explained on this page, so you can check it yourself.
- Free to use, with no sign-up.
- Results are estimates, not financial advice.
- Spotted a mistake? Tell us and we'll look into it.
After 15 years as a mathematics educator, I built CalculStore to give students, teachers, professionals and anyone working with numbers simple, reliable tools.
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