Depreciation CalculatorFree online financial calculator — instant results, no sign-up
Straight-line and double-declining depreciation.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
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About the Depreciation Calculator
This calculator computes asset depreciation using both the straight-line method and the double-declining balance (DDB) method. Business owners, accountants, and finance students use it to project annual expense recognition and track declining book values over an asset's useful life.
- Asset cost
- Total acquisition or purchase cost of the asset in dollars (positive number).
- Salvage value
- Estimated residual or scrap value of the asset at the end of its useful life in dollars.
- Useful life
- Estimated duration the asset remains productive, specified in whole years.
Formula and method
Straight-Line: SL = (Cost - Salvage) / Life Double-Declining Balance: Depreciation = min(Book Value × (2 / Life), Book Value - Salvage)
- CostInitial purchase price of the asset
- SalvageEstimated value at the end of useful life
- LifeTotal useful life in years
- Book ValueCarrying value of the asset at the start of each year (starts at Cost)
The tool computes a constant straight-line annual depreciation by dividing depreciable cost by total years. For double-declining balance, it iterates year by year, multiplying the starting book value by twice the straight-line rate, capped so the asset's book value does not fall below the salvage value.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Asset cost50000 $
- Salvage value5000 $
- Useful life5 years
Results
- Straight-line per year$9,000.00
- DDB year 1$20,000.00 · book $30,000.00
- DDB year 2$12,000.00 · book $18,000.00
- DDB year 3$7,200.00 · book $10,800.00
- DDB year 4$4,320.00 · book $6,480.00
- DDB year 5$1,480.00 · book $5,000.00
How to use the Depreciation Calculator
- 1Subtract salvage value from original cost, then divide by useful life to determine annual straight-line depreciation.
- 2Set the beginning book value equal to original asset cost.
- 3For each year, calculate standard declining balance depreciation as Book Value × (2 / Life).
- 4Cap annual depreciation so the remaining book value never drops below the specified salvage value, then update the book value for the next year.
Reading your result
The straight-line figure represents a constant yearly write-off spread evenly across the asset's lifespan. The double-declining balance schedule shows accelerated depreciation with larger write-offs in early years, alongside the asset's remaining book value at each year-end.
Limitations
The calculator does not implement tax-specific depreciation systems such as the Modified Accelerated Cost Recovery System (MACRS) or Section 179 expensing. It assumes a full year of depreciation in year one, ignoring mid-year, mid-quarter, or mid-month convention rules.
Common questions
Why does double-declining depreciation drop significantly in the final years?+
DDB accelerates depreciation based on remaining book value, but total depreciation cannot reduce an asset's book value below its salvage value. When the remaining depreciable margin is smaller than the standard 200% rate, depreciation is capped at the exact difference between book value and salvage value.
Can salvage value be zero?+
Yes. If an asset is expected to have no resale or scrap value at the end of its life, enter 0 for the salvage value.
Does this calculator match tax depreciation filings?+
Not necessarily for tax returns. Many tax authorities, such as the IRS, require specific recovery periods and depreciation tables (like MACRS) rather than pure financial accounting methods.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
Further reading
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Results are estimates for informational purposes and are not financial, medical or legal advice.