Depreciation Calculator
Build straight-line, declining-balance, and sum-of-years depreciation schedules.
Build an annual depreciation schedule, including a partial first year.
Result
Custom months prorates service years by entered months; Actual days uses inclusive service dates within the entered first accounting year, then carries the unused service-year fraction into later years. These conventions are explicitly defined here; original convention choices remain unverified. Planning depreciation schedule, not a MACRS tax schedule. Declining balance does not switch to straight line or force a terminal write-down. Partial-year methods require verification against the original accounting convention.
Calculation details
Scroll horizontally or vertically to see more. Download CSV for the complete schedule.
| Year | Depreciation | Accumulated depreciation | Book value |
|---|---|---|---|
| 1 | 9,000 | 9,000 | 41,000 |
| 2 | 9,000 | 18,000 | 32,000 |
| 3 | 9,000 | 27,000 | 23,000 |
| 4 | 9,000 | 36,000 | 14,000 |
| 5 | 9,000 | 45,000 | 5,000 |
How to use this calculator
Build an annual depreciation schedule, including a partial first year. Enter amounts in the units shown, select the applicable options, and click Calculate. Use Reset to restore the starting values.
Calculation formula
Annual depreciation = (cost − salvage)/life.
Assumptions and accuracy
Review timing, rates, fees and result notes when comparing scenarios. Future returns and rates are assumptions rather than guaranteed outcomes. Monetary display follows the currency’s precision; intermediate calculations retain additional digits.
Choose what to calculate
Straight line depreciation calculator with salvage value
Calculate asset depreciation using cost, salvage value, useful life and selected method. These book-depreciation models do not implement the complete MACRS tax system.
Open this calculationUnderstanding this calculation
Compare straight-line, declining-balance and sum-of-years-digits depreciation. Cost, salvage value, useful life and first-year conventions determine how book value changes.
Worked examples
Straight-line depreciation with a salvage value
Illustrative inputs are specified in the steps below; the example link loads the complete settings. Unmentioned settings use the linked defaults.
- Depreciable basis is 50,000 − 5,000 = 45,000. Over five full years, annual straight-line depreciation is 45,000 / 5 = 9,000.
Depreciable basis: 45,000 USD.
Try these inputsCommon questions
Is salvage value depreciated?
The modeled depreciable amount excludes salvage, and the schedule should not reduce book value below the selected salvage floor.
Can accounting depreciation be used directly for tax?
Not always. Tax law can require different methods, asset lives, conventions or allowances.
Scope and assumptions
These are mathematical schedules, not automatic MACRS or tax-return instructions. Accounting policy and tax depreciation can require different rules.
Sources
- Calculation methodology, rule versions and testing limitations
- Reference calculator for feature comparison (not a model-parity certification)
Calculation notes checked . Examples are mathematical checks under the stated assumptions.
Calculation methods and formulas
Straight Line
Build an annual depreciation schedule, including a partial first year.
Annual depreciation = (cost − salvage)/life.
Declining Balance
Build an annual depreciation schedule, including a partial first year.
Depreciation = opening book value × factor/life, capped at salvage.
Sum of Years’ Digits
Build an annual depreciation schedule, including a partial first year.
Depreciation = (cost − salvage) × remaining life / sum of years.
See our calculation methodology and review status for data versions, rounding and validation limitations.