Which depreciation method should I use?

Straight-line is simplest and common for financial reporting. Double-declining balance accelerates expense for fast-obsolescence assets. SYD is another accelerated option. Units-of-production ties expense to actual usage. Consult tax rules or your accountant.

Does the calculator enforce salvage value limits?

Yes. The schedule never depreciates below the salvage value. If needed, the last period is adjusted to respect the salvage floor.

Can I export the depreciation schedule?

Yes. Use the Export CSV button to download the full schedule for your records or spreadsheets.

Is partial first-year depreciation supported?

This tool focuses on full-year periods for clarity. For tax-specific conventions (half-year, mid-quarter), see IRS Publication 946 and consider MACRS tables.

What is the DDB switching option?

When enabled, the calculator automatically switches from declining balance to straight-line at the point it yields a higher deduction, a common practice for smoother schedules.

Are the results GAAP/IFRS compliant?

The methods implemented align with standard formulas recognized in GAAP/IFRS literature (e.g., IAS 16). However, compliance depends on your policy choices and disclosures.

Depreciation Calculator

This professional-grade tool computes asset depreciation using Straight-Line, Declining Balance (125%/150%/200%), Sum-of-the-Years’-Digits, or Units of Production. It’s designed for finance teams, accountants, and operators who need fast, accurate schedules with strong accessibility and export options.

Calculator

All fields marked with * are required.

Straight-Line Declining Balance SYD Units of Prod.

Asset Cost *

Salvage Value *

Useful Life (years) *

Results

Depreciation Expense (period)

$0.00

Accumulated Depreciation

$0.00

Book Value (end of period)

$0.00

For Units of Production, the table reflects the current period only. For other methods, a full annual schedule is shown.

Annual Depreciation Schedule
Year	Depreciation	Accumulated	Book Value
Enter values and calculate to see the schedule.

Data Source and Methodology

Primary reference: IRS, Publication 946 — How To Depreciate Property (2024), U.S. Department of the Treasury. Direct link.

Secondary reference for financial reporting concepts: IAS 16 — Property, Plant and Equipment (IFRS Foundation, 2023). Overview.

Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.

The Formula Explained

Straight-Line (SL)

$$ \text{Depreciation}_{\text{annual}}=\frac{C - S}{n} $$

Declining Balance (DB / DDB)

$$ r=\frac{f}{n},\quad \text{Dep}_t = r \cdot \text{BV}_{t-1}, \quad \text{BV}_t=\text{BV}_{t-1}-\text{Dep}_t $$

with optional switch to straight-line when it yields a higher deduction, and capped so that BV never falls below S.

Sum-of-the-Years’-Digits (SYD)

$$ \text{SYD}=\frac{n(n+1)}{2},\quad \text{Dep}_t=\frac{n-t+1}{\text{SYD}}\,(C-S) $$

Units of Production (UoP)

$$ \text{Rate per Unit}=\frac{C-S}{U_{\text{total}}},\quad \text{Depreciation}=\text{Rate per Unit}\times U_{\text{period}} $$

Glossary of Variables

C: Asset cost (purchase price capitalized).
S: Salvage (residual) value at end of life.
n: Useful life in years.
f: Declining balance factor (e.g., 2.0 for 200%).
r: Periodic depreciation rate for DB (f/n).
BV: Book value (cost minus accumulated depreciation).
U_total: Total expected units of output.
U_period: Units produced/used in the current period.
Dep, Dep_t: Depreciation expense (in period t).

How It Works: A Step-by-Step Example

Scenario: C = $50,000; S = $5,000; n = 5 years; method = Straight-Line.

Compute depreciable base: C − S = 50,000 − 5,000 = 45,000.
Annual depreciation: 45,000 / 5 = 9,000.
End of Year 1: Accumulated = 9,000; Book Value = 50,000 − 9,000 = 41,000.
End of Year 5: Accumulated = 45,000; Book Value = 5,000 (salvage floor).

This follows: $$ \text{Depreciation}_{\text{annual}}=\frac{C - S}{n} $$

Frequently Asked Questions (FAQ)

Which depreciation method is best for my asset?

Straight-Line is common for stable-use assets. Declining Balance fits fast-obsolescence or front-loaded utility. SYD is another accelerated method. Units-of-production suits usage-driven wear and tear.

Does this calculator support MACRS?

This tool focuses on core formulas and full-year periods. MACRS is a tax system with specific property classes and conventions (half-year, mid-quarter). Consult IRS Publication 946 for MACRS tables.

What if my salvage value equals or exceeds cost?

Depreciation is not possible in that case. The tool flags an error because the depreciable base (C − S) must be positive.

How does the DDB switch to Straight-Line work?

For each year, the tool compares the DDB amount with the straight-line amount over remaining life and uses the higher value, ensuring the schedule respects the salvage floor.

Can I export my results?

Yes. After calculating, use “Export CSV” to download the schedule for your records.

Do you support partial periods (monthly) or mid-year conventions?

Not in this version for performance and clarity. You can approximate by adjusting life or using Units-of-Production for usage-based periods.

Are the formulas audited?

They align with standard references (IRS Pub 946; IAS 16). Still, confirm with your accounting policy or advisor for specific reporting or tax situations.

Tool developed by Ugo Candido. Content reviewed by CalcDomain Editorial Team.
Last reviewed for accuracy on: September 13, 2025.