Straight-line depreciation
(Cost − Salvage) ÷ Useful lifeThe same amount every year. ($50,000 − $5,000) ÷ 5 = $9,000 a year, or 20% of the depreciable base.
Straight-line, DDB, sum-of-years, MACRS and WDV
Depreciation Calculator
This free depreciation calculator works out yearly depreciation and book value with every common method. Compare methods on one chart, handle a partial first year, and download the full depreciation schedule as a CSV file.
Asset depreciation calculator
Book value over time
Your method in gold, compared with the alternatives.
Depreciation schedule
| Year | Opening value | Depreciation | Accumulated | Closing value |
|---|---|---|---|---|
| 2026 | $50,000.00 | $9,000.00 | $9,000.00 | $41,000.00 |
| 2027 | $41,000.00 | $9,000.00 | $18,000.00 | $32,000.00 |
| 2028 | $32,000.00 | $9,000.00 | $27,000.00 | $23,000.00 |
| 2029 | $23,000.00 | $9,000.00 | $36,000.00 | $14,000.00 |
| 2030 | $14,000.00 | $9,000.00 | $45,000.00 | $5,000.00 |
| Total | $45,000.00 | $5,000.00 |
Formulas
Depreciation Formulas for Every Method
Depreciation spreads the cost of an asset over the years it earns money for you. Each method spreads it differently. Examples use a $50,000 asset with a $5,000 salvage value and a 5-year life.
Double declining balance
Book value × (2 ÷ Useful life)A fixed 40% of the remaining book value each year: $20,000 in year 1, then $12,000, then $7,200. It never goes below salvage.
Sum-of-years digits
(Cost − Salvage) × Remaining life ÷ SYDFor 5 years, SYD = 5 + 4 + 3 + 2 + 1 = 15. Year 1 is $45,000 × 5/15 = $15,000, year 2 is $12,000, and so on.
MACRS (US tax)
Cost basis × IRS table percentageSalvage is ignored and a half-year convention applies. A 5-year asset gets 20% in year 1, so $50,000 × 20% = $10,000.
Units of production
(Cost − Salvage) ÷ Total units × Units usedTies depreciation to usage. A machine rated for 90,000 hours costs $0.50 an hour, so 12,000 hours in a year is $6,000.
Written down value (WDV)
Opening WDV × Fixed rate %Used for Indian income tax. At 15%, year 1 is $7,500 on $50,000 and year 2 is $6,375 on $42,500. Choose declining balance and a custom rate.
Compare
Depreciation Methods Compared
Straight-line is the default for financial statements. Accelerated methods give bigger deductions sooner, which suits assets that lose value quickly.
| Method | Pattern | Best for |
|---|---|---|
| Straight-line | Even every year | Buildings, furniture, most book accounting |
| Double declining balance | Large early, shrinking later | Vehicles, computers and tech that ages fast |
| Sum-of-years digits | Front-loaded, smoother than DDB | Equipment whose output falls over time |
| MACRS | Front-loaded, set by IRS tables | US federal tax returns |
| Units of production | Follows actual usage | Machinery and vehicles tracked by hours or miles |
| WDV | Fixed rate on falling value | Income tax depreciation in India |
Reference
MACRS Depreciation Rates (Half-Year Convention)
Percentages from IRS Publication 946, Table A-1, for General Depreciation System property. Multiply the asset’s cost basis by the rate for each year. The mid-quarter convention applies instead if over 40% of the year’s purchases were placed in service in the last quarter.
| Year | 3-year | 5-year | 7-year | 10-year | 15-year | 20-year |
|---|---|---|---|---|---|---|
| 1 | 33.33% | 20% | 14.29% | 10% | 5% | 3.75% |
| 2 | 44.45% | 32% | 24.49% | 18% | 9.5% | 7.219% |
| 3 | 14.81% | 19.2% | 17.49% | 14.4% | 8.55% | 6.677% |
| 4 | 7.41% | 11.52% | 12.49% | 11.52% | 7.7% | 6.177% |
| 5 | 11.52% | 8.93% | 9.22% | 6.93% | 5.713% | |
| 6 | 5.76% | 8.92% | 7.37% | 6.23% | 5.285% | |
| 7 | 8.93% | 6.55% | 5.9% | 4.888% | ||
| 8 | 4.46% | 6.55% | 5.9% | 4.522% | ||
| 9 | 6.56% | 5.91% | 4.462% | |||
| 10 | 6.55% | 5.9% | 4.461% | |||
| 11 | 3.28% | 5.91% | 4.462% | |||
| 12 | 5.9% | 4.461% | ||||
| 13 | 5.91% | 4.462% | ||||
| 14 | 5.9% | 4.461% | ||||
| 15 | 5.91% | 4.462% | ||||
| 16 | 2.95% | 4.461% | ||||
| 17 | 4.462% | |||||
| 18 | 4.461% | |||||
| 19 | 4.462% | |||||
| 20 | 4.461% | |||||
| 21 | 2.231% |
India
WDV Depreciation Rates in India (Income Tax Act)
Under the Income Tax Act, depreciation is charged on the written down value of each block of assets. Common rates are shown below. An asset used for less than 180 days in the year it is bought gets half the normal rate for that year.
| Asset block | WDV rate |
|---|---|
| Buildings used mainly as residences | 5% |
| Other buildings (offices, factories, shops) | 10% |
| Furniture and fittings | 10% |
| Plant and machinery (general) | 15% |
| Motor cars not used for hire | 15% |
| Computers and computer software | 40% |
Tip: to model WDV, choose Declining balance, set Custom rate, and turn off the switch to straight-line. Pick 6 months in year 1 to apply the half-rate rule for assets used under 180 days.
Why ours
Why This Depreciation Calculator Is Better
Most depreciation calculators handle one method and show a bare table. This one is built for real bookkeeping and tax work.
Every major method
Straight-line, 200% and 150% declining balance, sum-of-years digits, MACRS and custom-rate WDV in a single tool.
Partial first year
Choose how many months the asset was in service in year 1. The calculator prorates correctly and carries the rest into an extra year.
Side-by-side chart
See how your method compares with straight-line, double declining and sum-of-years on one book value chart.
Smart switch to straight-line
Declining balance switches to straight-line when that gives a bigger deduction, so the asset reaches salvage value on time.
Full schedule and CSV
Get opening value, depreciation, accumulated total and closing value for every year, ready to download for Excel or Google Sheets.
Private and shareable
Runs entirely in your browser in six currencies. Nothing is stored, and a share link reopens your exact calculation.
Guide
How to Use the Depreciation Calculator
You will have a full schedule in under a minute. Everything updates as you type.
- Enter the asset cost
Include the purchase price plus delivery, installation and other costs needed to put the asset into use.
- Add salvage value and useful life
Estimate what the asset will be worth at the end and how many years you will use it. MACRS fills these in for you.
- Pick a depreciation method
Choose straight-line, declining balance, sum-of-years digits or MACRS. For WDV, use declining balance with a custom rate.
- Set the first year
Enter the year the asset was placed in service and the months used in that first year.
- Review, compare and export
Check the chart and schedule, then download the CSV, copy the result or share a link.
Benefits
Who Benefits From a Depreciation Calculator
Accurate depreciation affects your profit, your tax bill and the value of what you own.
Small business owners
Plan tax deductions, compare accelerated and even methods, and see how big purchases affect profit over the next few years.
Accountants and bookkeepers
Produce clean fixed asset schedules in seconds and export them straight into your workpapers or accounting software.
Students
Check homework answers for straight-line, declining balance and sum-of-years problems, with the working shown for every result.
Vehicle and equipment buyers
Estimate what a car or machine will be worth on paper in a few years, then weigh it against costs in the car lease calculator.
FAQ
Depreciation Calculator FAQ
What is depreciation?
Depreciation is the way businesses spread the cost of a long-lasting asset, such as a vehicle, machine or computer, over the years it is used. Each year part of the cost is recorded as an expense, and the asset’s book value falls by the same amount.
How do you calculate straight-line depreciation?
Subtract the salvage value from the asset cost and divide by the useful life in years. A $50,000 asset with a $5,000 salvage value and a 5-year life depreciates by $9,000 a year.
How does the double declining balance method work?
Divide 200% by the useful life to get the rate, then apply it to the opening book value each year. For a 5-year asset the rate is 40%, so a $50,000 asset depreciates $20,000 in year 1 and $12,000 in year 2. Book value never drops below salvage.
Which depreciation method is best?
Straight-line is simplest and is the most common for financial statements. Accelerated methods such as double declining balance and sum-of-years digits suit assets that lose value quickly, like vehicles and computers. Most US business assets must use MACRS for federal tax.
What is MACRS depreciation?
MACRS, the Modified Accelerated Cost Recovery System, is the IRS method for depreciating business property. Assets are grouped into classes such as 3, 5, 7, 10, 15 and 20 years, salvage value is ignored, and fixed yearly percentages apply. A 5-year asset is depreciated 20%, 32%, 19.2%, 11.52%, 11.52% and 5.76% over six tax years.
What is salvage value?
Salvage value, also called residual or scrap value, is what you expect the asset to be worth at the end of its useful life. Depreciation stops once book value reaches salvage value.
How do you depreciate an asset bought partway through the year?
Prorate the first year by the months the asset was in service. An asset placed in service in October has 3 months of use, so the first year gets 3/12 of a full year of depreciation and the rest carries into one extra year at the end.
What is the WDV method of depreciation in India?
The written down value method charges a fixed percentage on the opening value each year, as required under the Income Tax Act. Common rates are 15% for plant and machinery and 40% for computers. Assets used for less than 180 days in the year of purchase get half the rate in that year.
Can an asset be depreciated below its salvage value?
No. Under straight-line, declining balance and sum-of-years digits, depreciation stops when book value reaches the salvage value. MACRS ignores salvage value and depreciates the full cost basis to zero.
Build Your Depreciation Schedule Now
Use the depreciation calculator for every new asset you buy, then check returns, margins and tax with our related business tools.
Calculate depreciationResults are estimates for planning and education. Tax rules change, so confirm methods and rates with a qualified accountant before filing.