Calculate asset depreciation using Straight-Line, Declining Balance, Sum-of-Years-Digits, or MACRS methods. View full year-by-year depreciation schedule.
Asset Details
$
$
years
%
150% = 1.5× SL; 200% = DDB
Year 1 Depreciation
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Depreciable Amount
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Asset Cost
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Salvage Value
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Depreciable Base
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Method
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Year
Depreciation
Book Value
Accum. Depr.
FAQ
What is depreciation?
Depreciation is the systematic allocation of an asset's cost over its useful life. It reflects the consumption of the asset's economic value and creates a tax deduction for businesses.
What is straight-line depreciation?
SL depreciation = (Cost − Salvage Value) / Useful Life. Equal depreciation every year. Simplest method, used for most assets. Example: $50,000 asset, $5,000 salvage, 5 years = $9,000/year.
What is double declining balance?
DDB = 2 × (1/Useful Life) × Book Value. Accelerates depreciation in early years. Useful for assets that lose value faster when new (vehicles, computers). Higher deductions early = tax benefits now.
What is MACRS depreciation?
Modified Accelerated Cost Recovery System (MACRS) is required by the IRS for US federal tax purposes. It specifies recovery periods and allows accelerated depreciation for business assets. Consult a tax professional for specific MACRS class life.