Depreciation Calculator

Calculate how much value an asset loses over time using three standard depreciation methods. Get a full year-by-year schedule.

Depreciation Method

Equal depreciation every year — simplest and most commonly used method.

Currency

Asset Cost (Original Value)

Salvage Value (estimated value at end of life)

Useful Life

years

Year	Depreciation	Accumulated	Book Value

How to use

Choose a method

Straight Line — equal depreciation each year. Best for assets that wear evenly. Declining Balance — higher depreciation early. Best for tech and vehicles. Sum of Years Digits — accelerated, between SL and DB.
Enter asset details

Enter the original purchase price, the estimated salvage (residual) value at end of life, and the useful life in years.
For Declining Balance

Set the rate — 200% is the standard double declining balance (DDB). 150% is 1.5× declining balance. The rate determines how aggressively the asset depreciates early.
View the schedule

Expand the year-by-year schedule to see the exact depreciation amount, accumulated depreciation, and book value for every year of the asset's life.

Key Formulas

            Straight Line:

            Dep = (Cost − Salvage) ÷ Life

            Declining Balance:

            Dep = Book Value × (Rate% ÷ Life)

            Sum of Years Digits:

            Dep = (Cost − Salvage) × (Remaining ÷ SYD)

⚠️ Disclaimer

This calculator is for estimation purposes only. Tax depreciation rules vary by country, asset type, and applicable law. Always consult a certified accountant or tax professional for official depreciation schedules.

What is Depreciation?

Depreciation is the reduction in the value of an asset over time due to wear and tear, obsolescence, or usage. Businesses record depreciation as an expense to match the cost of an asset against the revenue it generates over its useful life. It also reduces taxable income, making it a key concept in accounting and tax planning.

Depreciation Methods Compared

Method	Pattern	Best For	Complexity
Straight Line (SLD)	Equal every year	Buildings, furniture, equipment	Simple
Double Declining Balance (DDB)	Higher early, lower later	Vehicles, computers, tech	Moderate
Sum of Years Digits (SYD)	Accelerated, smoother than DDB	General accelerated depreciation	Moderate

Frequently Asked Questions

What is straight line depreciation?

Straight line depreciation spreads the cost of an asset evenly over its useful life. The annual depreciation is calculated as (Cost − Salvage Value) ÷ Useful Life. For example, a $50,000 machine with a $5,000 salvage value and 10-year life depreciates $4,500 per year.

What is double declining balance depreciation?

Double declining balance (DDB) is an accelerated method that applies twice the straight-line rate to the remaining book value each year. Because it's applied to the book value (not the original cost), the depreciation amount decreases over time. It's commonly used for vehicles and technology that lose value quickly early in their life.

What is the sum of years digits method?

Sum of Years Digits (SYD) is an accelerated depreciation method that allocates a larger portion of the depreciable amount to earlier years. The SYD is calculated by adding up the digits of each year of the asset's life (e.g., for 5 years: 5+4+3+2+1=15). Each year's depreciation fraction is the remaining life ÷ SYD.

What is salvage value?

Salvage value (also called residual value or scrap value) is the estimated value of an asset at the end of its useful life. It's subtracted from the original cost to get the total depreciable amount. If you plan to sell or scrap the asset for $5,000 after 10 years, that $5,000 is the salvage value.

What is book value?

Book value is the remaining value of an asset after accumulated depreciation is subtracted from the original cost. Book Value = Cost − Accumulated Depreciation. At the end of an asset's useful life, the book value should equal the salvage value.

Which depreciation method should I use?

It depends on the asset and your accounting goals. Straight line is simplest and required for many types of assets. Accelerated methods (DDB, SYD) reduce taxable income more in early years, which can be advantageous for tax planning. Many businesses use different methods for tax reporting vs. financial reporting. Always consult an accountant.