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Depreciation Calculator

About Depreciation Calculator

Our depreciation calculator helps you calculate the depreciation of assets using three common methods: straight-line, declining balance, and sum-of-years digits. This tool is essential for accountants, business owners, and anyone needing to calculate asset depreciation for financial reporting or tax purposes.

How to Use

  1. Enter the initial cost of the asset
  2. Enter the salvage value (estimated value at end of useful life)
  3. Enter the useful life of the asset in years
  4. Select the depreciation method you want to use
  5. If using declining balance, enter the depreciation rate
  6. Click "Calculate Depreciation" to see results and schedule

Depreciation Methods Explained

Declining Balance

Accelerated depreciation method that applies a fixed rate to the declining book value.

Formula: Book Value × Rate

Sum-of-Years Digits

Accelerated method using a fraction based on remaining useful life over sum of years.

Formula: (Cost - Salvage) × (Remaining Life ÷ Sum of Years)

="font-semibold text-lg mb-2">Straight-Line

Spreads depreciation evenly over the asset's useful life. Most common and simple method.

Formula: (Cost - Salvage) ÷ Useful Life