Calculate asset depreciation schedules instantly using Straight Line or Double Declining Balance methods.

How It Works

The Depreciation Calculator helps businesses and individuals determine the loss in value of an asset over its useful life.

Asset Cost: Enter the total original cost of the asset (including shipping, setup, and taxes).
Salvage Value: Estimate the remaining value of the asset at the end of its useful life.
Useful Life: The number of years you expect the asset to be productive.
Method: Choose between Straight Line (even depreciation every year) or Double Declining Balance (accelerated depreciation in early years).

Formula and Assumptions

Straight Line Method

The simplest and most common method. It assumes the asset loses an equal amount of value each year.

Annual Depreciation = (Asset Cost - Salvage Value) / Useful Life

Double Declining Balance

An accelerated depreciation method that assumes the asset loses more value in its early years.

Depreciation Rate = 2 / Useful Life
Annual Depreciation = Book Value at Beginning of Year × Depreciation Rate (Note: In the final year, depreciation is adjusted so the book value exactly equals the salvage value).

Worked Example

Suppose you purchase equipment for $10,000** with a salvage value of **$ 2,000 and a useful life of 4 years.

Using Straight Line:

Annual Depreciation = ( $10,000 -$ 2,000) / 4 = $2,000 per year
End of Year 1 Book Value: $8,000
End of Year 4 Book Value: $2,000

Result Interpretation

Depreciation Expense: The amount you can deduct as a business expense for that specific year.
Accumulated Depreciation: The total depreciation claimed on the asset up to that point.
End Book Value: The net value of the asset on your balance sheet at the end of the year.

FAQs

Which method should I choose?

Straight Line is best for assets that lose value evenly over time (like furniture or buildings). Double Declining Balance is better for assets that lose value quickly, like computers or vehicles, and allows for larger tax deductions in early years.

What is Salvage Value?

Salvage value (or residual value) is the estimated amount you could sell the asset for at the end of its useful life. It cannot be depreciated.

Sources & Review

Based on standard Generally Accepted Accounting Principles (GAAP).
Last Reviewed: September 2026

Depreciation Calculator