Asset Depreciation Calculator
Calculate asset depreciation using straight-line or declining balance methods.
See annual depreciation, accumulated depreciation, and book value.
Annual Depreciation
Depreciation allocates the cost of an asset over its useful life.
Straight-Line Method (most common):
Annual Depreciation = (Cost - Salvage Value) / Useful Life
Produces the same expense every year.
Declining Balance Method (accelerated):
Annual Depreciation = Book Value × (1 / Useful Life) × Multiplier
Common multipliers:
- Double Declining Balance (DDB): multiplier = 2
- 150% Declining Balance: multiplier = 1.5
Book Value at any point = Cost - Accumulated Depreciation
Example: Equipment costing $50,000, salvage value $5,000, useful life 10 years:
- Straight-line: $4,500/year for 10 years
- Double declining: $10,000 in year 1, $8,000 in year 2, decreasing each year
Straight-line is simpler and more predictable. Declining balance front-loads the expense, which can reduce taxable income faster in early years.