Depreciation Calculator
Calculate asset depreciation over time
Estimated value at end of life
| Year | Depreciation | Accumulated | Book Value |
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What is Depreciation Calculator?
The Depreciation Calculator is a free online tool that works out how an asset loses value over its useful life and builds a year-by-year depreciation schedule. You enter the asset cost, the salvage value (what it is expected to be worth at the end of its life), the useful life in years, and a depreciation method. It supports five methods — straight-line, declining balance, double-declining balance, sum-of-the-years'-digits, and units of production — and a currency selector so figures display in USD, EUR, GBP, SAR, AED, JPY, INR, or no symbol. The tool then shows the average annual depreciation, the total depreciation, the depreciable amount, and the ending book value, plus a full schedule listing each year's depreciation, the accumulated depreciation, and the remaining book value. A chart visualizes how the book value falls over time. Everything runs instantly in your browser with no signup.
How to use Depreciation Calculator?
Building a depreciation schedule takes only a few seconds:
- 1 Pick a currency, then enter the asset cost — the full purchase price of the equipment, vehicle, or other long-term asset.
- 2 Enter the salvage value, the estimated worth at the end of the asset's life, and the useful life in years over which it will be depreciated.
- 3 Choose a method: straight-line spreads the cost evenly; declining balance and double-declining balance front-load more depreciation; sum-of-the-years'-digits is a milder accelerated method; and units of production ties depreciation to output (enter the total estimated units and the units produced each year).
- 4 Read the results: the annual, total, depreciable amount, and ending book value update instantly, and the schedule and chart show each year's depreciation, the accumulated total, and the falling book value.
Why use this tool?
Depreciation spreads the cost of a long-term asset across the years it is used, which matters for accurate financial statements, budgeting, and tax planning. Choosing the right method changes the timing of the expense: straight-line gives a steady charge, sum-of-the-years'-digits accelerates moderately, and double-declining balance recognizes the most cost early — suiting assets that lose value quickly. Units of production instead matches depreciation to actual usage, ideal for machinery and vehicles whose wear depends on output rather than time. Seeing the full schedule and the declining book value makes the impact on profit and asset value clear, and comparing methods in your chosen currency helps you pick the best fit. Because the calculation runs locally in your browser, your asset figures stay private and you can compare methods freely.
Examples
An asset costing $50,000 with a $5,000 salvage value over 10 years depreciates by $4,500 each year — a steady, predictable charge.
Switch to double-declining balance to see larger depreciation in the early years and smaller amounts later, which suits assets that lose value quickly.
A $10,000 asset with a $1,000 salvage over 5 years depreciates $3,000 in year one (5/15 of the $9,000 depreciable amount), then less each year — a smoother acceleration than double-declining.
For a machine expected to make 100,000 units, enter the units produced each year and depreciation follows actual output rather than the calendar.
Use the schedule to read the remaining book value at any year, useful for asset registers, resale planning, or financial reporting.
Frequently Asked Questions
Is the Depreciation Calculator free?
Yes. It is completely free, with no signup, no limits, and no account required. You can calculate depreciation for as many assets as you like.
What is the difference between straight-line and declining balance?
Straight-line spreads the depreciable cost evenly across the useful life, giving the same charge each year. Declining balance and double-declining balance apply a higher rate to the remaining book value, so more depreciation falls in the early years.
What is the sum-of-the-years'-digits method?
An accelerated method that multiplies the depreciable amount by a fraction whose numerator is the remaining life and whose denominator is the sum of the years' digits. For a 5-year asset that sum is 5+4+3+2+1=15, so year one uses 5/15, year two 4/15, and so on — accelerating more gently than double-declining balance.
How does units-of-production depreciation work?
It allocates the depreciable amount per unit of output: depreciable amount divided by total estimated units gives a per-unit rate, then each year's depreciation equals that rate times the units produced that year.
What is salvage value?
Salvage value is the estimated amount an asset is expected to be worth at the end of its useful life. Depreciation is calculated on the cost minus the salvage value, which is the depreciable amount.
What is book value?
Book value is the asset cost minus the accumulated depreciation to date. It represents the asset's remaining value on the books and falls each year as depreciation is recorded.
Is this tax or accounting advice?
No. The tool computes depreciation from the figures and method you select. Tax rules on allowable methods and rates vary by country, so consult a professional for filing.
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