Depreciation Calculator
Build a depreciation schedule with straight-line, declining balance, sum-of-years digits, units of production or MACRS, with partial first years.
The interactive tool loads here when JavaScript runs.
About this toolWhat is the Depreciation Calculator?
Depreciation spreads the cost of a long-lived asset, such as a machine, a vehicle or a laptop fleet, across the years it is used. This calculator builds the full year-by-year schedule: opening book value, the charge for each year, accumulated depreciation and closing book value. It supports straight-line, double-declining balance, declining balance at any rate (150%, 125% and so on, with an optional switch to straight-line), sum-of-the-years' digits, units of production and US MACRS.
Enter the asset cost, its salvage value and its useful life, then pick a method. If the asset was bought part way through the year, choose how many months it was in use in year one and the schedule prorates the first year and runs into an extra final year. A chart shows the charge and book value each year, and a second chart compares how quickly straight-line, double-declining and sum-of-years write the asset down.
The schedule, chart and copyable summary are produced in your browser. Nothing is sent anywhere.
- Straight-line, double-declining, any declining-balance rate, SYD, units of production and MACRS
- Optional switch from declining balance to straight-line
- Partial first year by month in service
- MACRS GDS half-year percentages from IRS Publication 946 Table A-1
- Schedule table, depreciation and book value chart, method comparison chart
How to use the Depreciation Calculator
- Choose a method. Straight-line is the default for most financial statements; accelerated methods charge more in early years.
- Enter the cost (including delivery and installation), the salvage value and the useful life in whole years.
- For declining balance, set the factor (2 for 200%, 1.5 for 150%) and decide whether to switch to straight-line.
- Set the months in use during the first year if the asset was bought mid-year, and a first fiscal year to label the rows.
- For units of production, enter total lifetime units and the units used each year. For MACRS, choose the recovery class.
- Read the schedule table and charts, then copy the schedule as text or share a link.
Worked examples
Straight-line
Input
Cost 10,000; salvage 1,000; 5 years
Output
1,800.00 a year; book value 1,000.00 at the end
The 9,000 depreciable base is spread evenly. With 4 months in year one, the schedule becomes 600, 1,800 x 4 and a final 1,200.
Double-declining balance
Input
Cost 10,000; salvage 1,000; 5 years
Output
4,000.00; 2,400.00; 1,440.00; 864.00; 296.00
40% of the opening book value each year. The last year is only 296 because book value stops at the 1,000 salvage.
Sum-of-the-years' digits
Input
Cost 10,000; salvage 1,000; 5 years
Output
3,000.00; 2,400.00; 1,800.00; 1,200.00; 600.00
The base of 9,000 is multiplied by 5/15, 4/15 and so on. The charge falls by the same amount (600) every year.
MACRS 7-year property
Input
Basis 10,000; 7-year class; half-year convention
Output
1,429; 2,449; 1,749; 1,249; 893; 892; 893; 446
These match the worked example in IRS Publication 946. Eight tax years for a 7-year class is the half-year convention at work.
Background and insight
Straight-line charges (cost - salvage) / life every year. Declining balance charges a fixed percentage of the opening book value: the rate is factor / life, so double-declining on a 5-year asset is 40% a year. Salvage is not subtracted before applying that rate, but the book value is never allowed to fall below it. Sum-of-the-years' digits weights the early years using fractions of n(n + 1) / 2: for 5 years the fractions are 5/15, 4/15, 3/15, 2/15 and 1/15 of the depreciable base.
Without a switch, declining balance would leave a residue at the end of the life, so the final year takes whatever is left down to salvage. With the switch on, the calculator compares the declining-balance charge with straight-line over the remaining life each year and uses the larger one. That is the same rule the IRS builds into MACRS: running double-declining with the switch and a half-year first year reproduces the published MACRS percentages to within their rounding.
MACRS is US tax depreciation and differs from book depreciation: salvage is ignored, recovery periods are fixed classes, and a convention decides the first-year fraction. The MACRS option applies the General Depreciation System percentages for 3, 5, 7, 10, 15 and 20-year property under the half-year convention, taken from IRS Publication 946 (2025), Appendix A, Table A-1. It does not apply the mid-quarter convention, Section 179 expensing, bonus depreciation or real-property tables, so use it as a check and confirm a tax return with a professional.
Common use cases
Preparing a fixed asset register
Produce the schedule for a new asset so the monthly or annual journal entries are ready for the books.
Comparing methods before choosing a policy
See how much earlier expense lands under accelerated methods and how that changes reported profit in the first years.
Estimating US tax deductions
Check the MACRS deduction for equipment or a vehicle before talking to your accountant.
Valuing used equipment
Read the book value at any year to compare against a trade-in or resale offer.
Tips and limitations
- Book depreciation (for your financial statements) and tax depreciation (for the tax return) are often different. Many companies keep both.
- Land is never depreciated. Split the cost of property between building and land first.
- A partial first year pushes the last slice of depreciation into an extra year, so a 5-year asset bought in September appears in six fiscal years.
- Units of production stops once the asset reaches salvage, even if you list more units than the lifetime estimate.
- Useful life and salvage are estimates. Revisit them if the asset is used harder or lasts longer than planned.
Frequently asked questions
How do you calculate straight-line depreciation?
Subtract the salvage value from the cost and divide by the useful life in years. A 10,000 asset with a 1,000 salvage value and a 5-year life depreciates by 9,000 / 5 = 1,800 a year.
How does double-declining balance depreciation work?
Each year you charge twice the straight-line rate on the opening book value. For a 5-year life the rate is 2 / 5 = 40%. Year one on 10,000 is 4,000, year two is 40% of 6,000 = 2,400, and so on, stopping when book value reaches salvage.
When should declining balance switch to straight-line?
In the first year where straight-line over the remaining life gives a bigger charge than the declining-balance rate. Switching guarantees the asset reaches salvage by the end of its life. Turn on the switch and the schedule marks the year it happens.
What is the sum-of-the-years' digits method?
An accelerated method that multiplies the depreciable base by a falling fraction. For a 5-year life the digits sum to 15, so year one takes 5/15, year two 4/15, down to 1/15 in year five.
Is MACRS the same as double-declining balance?
Close but not identical. Most MACRS classes use 200% declining balance with a switch to straight-line, but they ignore salvage, use the half-year (or mid-quarter) convention and are published as fixed IRS percentage tables. This calculator uses the Table A-1 percentages directly.
How do I depreciate an asset bought in the middle of the year?
Choose the number of months it was in use in the first year. The first year gets that fraction of a full year's charge, and the remaining fraction is carried into one extra year at the end of the life.
Which depreciation method should a small business use?
For financial statements, straight-line is the most common because it is simple and matches assets that wear evenly. Accelerated methods suit assets that lose value fast, such as computers. For US tax, MACRS is generally required. An accountant can confirm the right policy for your situation.
Is there an in-depth guide to the Depreciation Calculator?
Yes. “Depreciation Methods Compared: Straight-Line, DDB, SYD and MACRS” covers the background, how it works, common pitfalls and worked examples. Read the full guide.
Related Tools You May Like
Free, in-browser tools that pair well with this one.