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Depreciation calculator

Depreciation for any year by straight-line, declining balance, sum-of-the-years’ digits or units of production, with the three time-based methods side by side.

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Depreciation for the year $1,800.00

How it works

straight-line = (cost − salvage) ÷ life

All methods spread the cost minus the salvage value (what it’s worth at the end) over the asset’s life; they differ in timing. Straight-line takes the same amount every year. Declining balance takes a fixed percentage of what’s left (200% ÷ life for “double declining”), so early years take more; it never goes below salvage. Sum-of-the-years’ digits weights year 1 by life ÷ (1 + 2 + … + life), year 2 by one less, and so on. Units of production spreads it by use instead of time. Tax depreciation (MACRS in the US) follows its own tables.

  1. Amount to spread $10,000.00 − $1,000.00 = $9,000.00
  2. Straight-line $9,000.00 ÷ 5 = $1,800.00

Good to know

  • Declining balance here doesn’t switch to straight-line in later years, and stops at the salvage value.
  • An estimate to plan with, not financial or tax advice.

Printed from rocketcalc.io/finance/depreciation