Depreciation Calculator

Calculate asset depreciation using Straight-Line, Double Declining Balance, or Sum-of-Years-Digits methods.

$
$

Calculate asset depreciation over time with our free calculator, supporting both straight-line and declining balance methods, useful for accounting, tax planning, and business asset tracking.

How It Works

Straight-Line Depreciation = (Asset Cost − Salvage Value) ÷ Useful Life. Declining Balance applies a fixed percentage to the asset's remaining book value each year, resulting in larger deductions early and smaller ones later.

How to Use This Calculator

  1. 1) Enter the asset's original cost
  2. 2) Enter estimated salvage value and useful life
  3. 3) Choose straight-line or declining balance method
  4. 4) Click Calculate to see the depreciation schedule

Frequently Asked Questions

Which depreciation method should I use?

Straight-line is simpler and spreads cost evenly; declining balance front-loads deductions, useful for assets that lose value faster early on (like vehicles or tech equipment). Check applicable tax rules for your situation.

What is salvage value?

The estimated resale or scrap value of an asset at the end of its useful life, subtracted from the original cost before spreading depreciation.

Does depreciation affect my taxes?

Yes, depreciation is typically a deductible business expense, though specific tax rules and allowable methods vary by jurisdiction, consult a tax professional for your specific situation.

What's the difference between book value and market value?

Book value reflects the asset's value per accounting records after depreciation; market value is what the asset could actually sell for, the two often differ.