Depreciation Calculator
Compare straight-line, declining balance and sum-of-the-years' digits schedules
Asset Details
Expected value at the end
First-year depreciation · Double-declining balance
$4,000
$9,000 to depreciate over 5 years, down to a $1,000 salvage value
Year 1: Straight-line
$1,800
book value $8,200 after year 1
Year 1: Double-declining balance
$4,000
book value $6,000 after year 1
Year 1: 150% declining balance
$3,000
book value $7,000 after year 1
Year 1: Sum-of-the-years' digits
$3,000
book value $7,000 after year 1
Double-declining balance Schedule
| Year | Depreciation | Accumulated | Book Value |
|---|---|---|---|
| 1 | $4,000.00 | $4,000.00 | $6,000.00 |
| 2 | $2,400.00 | $6,400.00 | $3,600.00 |
| 3 | $1,440.00 | $7,840.00 | $2,160.00 |
| 4 | $864.00 | $8,704.00 | $1,296.00 |
| 5 | $296.00 | $9,000.00 | $1,000.00 |
Uses a full-year convention. Declining-balance methods switch to straight-line once that gives the larger expense, so the asset ends exactly at its salvage value.
About Depreciation
Depreciation spreads an asset's cost over the years it helps earn income. Straight-line records the same expense every year. Declining-balance and sum-of-the-years' digits front-load the expense, which suits assets that lose value quickly, such as vehicles and computers. Every method depreciates the same total, down to the salvage value.
The Formulas
Straight-line = (cost − salvage) ÷ life
Declining balance = book value × (factor ÷ life)
SYD = (cost − salvage) × remaining life ÷ SYD
Double-declining uses factor 2; SYD = life × (life + 1) ÷ 2
Choosing a Method
- •Straight-line is simplest and the most common for financial reporting
- •Accelerated methods match assets that lose value fastest when new
- •Salvage value is an estimate; revisit it if conditions change
- •US tax depreciation generally uses MACRS, which has its own rules
- •Keep the same method for an asset unless there is a good reason to change