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Depreciation Calculator

Calculate asset depreciation using straight-line or declining balance methods.

Introduction

Depreciation Calculator — Calculate asset depreciation using straight-line or declining balance methods. Enter Asset cost, Salvage value, Useful life (years), Method, Declining rate (%) to get an instant, accurate result.

Formula

Straight-line: annual depreciation = (cost − salvage value) / useful life (years), the same amount each year. Declining balance: each year's depreciation = book value × declining rate % (capped so book value never drops below salvage value).

Step-by-step

  1. Enter the Asset cost.
  2. Enter the Salvage value.
  3. Enter the Useful life (years).
  4. Enter the Method.
  5. Enter the Declining rate (%).
  6. Click Calculate to see your result instantly.

Real-world example

Example: With Asset cost = 20000, Salvage value = 2000, Useful life (years) = 5, Method = straight_line, Declining rate (%) = 20, the Depreciation Calculator gives Method: straight_line, Annual Depreciation: 3600.

Frequently Asked Questions

What is the difference between the two methods?
Straight-line spreads the same depreciation amount evenly across each year; declining balance depreciates a larger amount early on and progressively smaller amounts as book value shrinks.
What is salvage value?
The estimated residual value of the asset at the end of its useful life.
What inputs does the Depreciation Calculator need?
You'll need to provide: Asset cost, Salvage value, Useful life (years), Method, Declining rate (%). All fields use sensible defaults, so you can see a working example immediately and then adjust the values to match your own numbers.
How accurate is the Depreciation Calculator?
The Depreciation Calculator applies the formula exactly as calculated — Straight-line: annual depreciation = (cost − salvage value) / useful life (years), the same amount each year. Declining balance: each year's depreciation = book value × declining rate % (capped so book value never drops below salvage value). — so results are precise for the inputs you provide. Accuracy depends on entering correct, realistic input values.
Are these results guaranteed?
No. The Depreciation Calculator gives an estimate based on the numbers you enter and standard financial formulas — actual rates, fees, taxes, and terms vary by lender, institution, and jurisdiction, and can change over time. This is not financial advice; consult a qualified financial professional for decisions specific to your situation.
Is the Depreciation Calculator free to use?
Yes, the Depreciation Calculator is completely free, requires no signup, and runs instantly in your browser.

About the Depreciation Calculator

The Depreciation Calculator uses a real, verifiable formula — Straight-line: annual depreciation = (cost − salvage value) / useful life (years), the same amount each year. Declining balance: each year's depreciation = book value × declining rate % (capped so book value never drops below salvage value). — so results are accurate every time, not an approximation.