How to use the Depreciation Calculator
Enter the asset cost, salvage value and useful life and the result appears straight away. Everything runs in your browser, so nothing you type is uploaded.
The formula
Straight-line = (cost − salvage) ÷ life
Examples
- 20,000 asset, 2,000 salvage, 5 years, straight line
Year | Depreciation | Book value 1 | $3,600.00 | $16,400.00 2 | $3,600.00 | $12,800.00 3 | $3,600.00 | $9,200.00
- Same asset, double declining balance
Year | Depreciation | Book value 1 | $8,000.00 | $12,000.00 2 | $4,800.00 | $7,200.00 3 | $2,880.00 | $4,320.00
- Same asset, sum of the years digits
Year | Depreciation | Book value 1 | $6,000.00 | $14,000.00 2 | $4,800.00 | $9,200.00 3 | $3,600.00 | $5,600.00
Limitations and assumptions
Accounting estimate. Tax depreciation (MACRS and similar) follows different tables.
Frequently asked questions
What is the straight line formula?
(Cost − salvage value) ÷ useful life in years.
When use declining balance?
For assets that lose value fastest early, such as vehicles and computers.
What is salvage value?
The estimated value at the end of its useful life.
Is this tax advice?
No. Tax rules often prescribe their own methods and lives.