Depreciation Calculator
Build a depreciation schedule using straight-line, declining balance, sum-of-years' digits or written-down value.
About the Depreciation Calculator
Straight-line spreads (cost − salvage) evenly over the useful life. Declining-balance methods charge a fixed percentage of the remaining book value, front-loading the expense; this calculator switches to straight-line when that gives a larger charge, so the asset reaches its salvage value. Sum-of-years' digits also front-loads expense on a set schedule.
Written-down value (WDV), used in India's Income-tax rules and many other tax systems, applies a fixed rate to the opening book value each year.
The school method is the same idea in textbook notation: the value after n years is P(1 − R/100)ⁿ, or P(1 − R₁/100)(1 − R₂/100)… when the rate changes each year. It works in exact fractions and shows each year's line.
The formula
SL = (cost − salvage) ÷ life; DDB = 2 ÷ life × book value; school: V = P(1 − R/100)ⁿ
- Different rates each year
- V = P(1 − R₁/100)(1 − R₂/100)(1 − R₃/100)…
Worked example
Example: First-year depreciation = $8,250
- Inputs: Asset cost: $55,000; Salvage value: $5,500; Useful life: 6 years; Method: Straight-line; WDV rate (for WDV method): 17%.
- Formula: SL = (cost − salvage) ÷ life; DDB = 2 ÷ life × book value; school: V = P(1 − R/100)ⁿ
- Result: First-year depreciation = $8,250
Things to keep in mind
- Tax depreciation (US MACRS, UK capital allowances, India block-of-assets half-year rule) follows its own tables and conventions.
Questions people ask
Which method should I use?
Straight-line is simplest; accelerated methods match assets that lose value quickly.
Is depreciation a cash cost?
No, it spreads the cost already paid over the asset's life.