The following calculator is for depreciation calculation in accounting. It takes the straight line, declining balance, or sum of the year' digits method. If you are using the double declining balance method, just select declining balance and set the depreciation factor to be 2. It can also calculate partial-year depreciation with any accounting year date setting.
• Straight Line: Equal periodic expense across all asset useful life years.
• Declining Balance: Accelerated depreciation (Factor 2 = 200% Double Declining Balance / DDB).
• Sum-of-the-Years' Digits: Accelerated schedule based on decreasing fractional lifespan weights.
• Toggle Partial year depreciation for mid-year asset acquisitions (pro-rata month convention).
Estimated scrap/residual value at end of useful life.
$2,000 / year
$10,000
| Year | Beginning Book | Depreciation | Accumulated | Ending Book |
|---|---|---|---|---|
| 1 | $11,000 | $2,000 | $2,000 | $9,000 |
| 2 | $9,000 | $2,000 | $4,000 | $7,000 |
| 3 | $7,000 | $2,000 | $6,000 | $5,000 |
| 4 | $5,000 | $2,000 | $8,000 | $3,000 |
| 5 | $3,000 | $2,000 | $10,000 | $1,000 |
In financial accounting under GAAP and IFRS, depreciation is the systematic allocation of the cost of a tangible fixed asset over its estimated useful lifespan. It embodies the matching principle, ensuring that the expense incurred in acquiring capital assets corresponds with the revenue generated by those assets over time.
The most widely used approach. It spreads the depreciable base (Cost minus Salvage Value) uniformly across each year of useful life, ideal for assets providing steady utility (e.g., office furniture, buildings).
An accelerated method applying twice the straight-line rate to the beginning book value each period. It front-loads deductions in early years when high-tech machinery or vehicles experience their steepest economic loss.
An accelerated technique using decreasing fractional weights based on the sum of consecutive year digits (e.g. 5+4+3+2+1 = 15). It offers a smoother accelerated decline than Double Declining Balance.