Depreciation Calculator
Calculate asset depreciation using straight-line, declining balance, and sum-of-years-digits methods.
Input Parameters
Results
Depreciation Methods
Straight-Line: equal deduction each year. Double Declining Balance: larger deductions early (aggressive). Sum-of-Years-Digits: accelerated but less aggressive than DDB. The choice affects cash flow and tax planning.
What is the Depreciation Calculator?
The Depreciation Calculator is a corporate accounting tool. It calculates how a physical asset (like a delivery truck or factory equipment) loses its value over time, allowing businesses to claim massive tax write-offs.
How It Works (Formula)
The tool supports both "Straight-Line" depreciation (losing a fixed amount of value every year) and "Declining Balance" depreciation (losing a percentage of its value, front-loading the tax write-offs). It factors in the purchase price minus its final "salvage" scrap value.
$$ \text{Annual Expense} = \frac{\text{Asset Cost} - \text{Salvage Value}}{\text{Useful Life}} $$
The GAAP standard for Straight-Line depreciation.
How to Use It
Enter the initial cost of the asset. Input the Salvage Value (what you can sell it for at the end). Input the "Useful Life" in years. The calculator will output a schedule showing exactly how much value you can write off your taxes annually.