Depreciation Calculator

Calculate depreciation using straight line, declining balance, or sum of the year's digits method. For double declining balance method, set the depreciation factor to 2. Supports partial-year depreciation.

Modify the values and click Calculate
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Depreciation Method

Asset Cost

Salvage Value

Depreciation Years

Round to Dollars?

Yes

Partial Year Depreciation?

Yes

Depreciation

Depreciation is the reduction in an asset's value over time due to wear and tear, obsolescence, or other factors. For example, a widget-making machine might produce fewer widgets as it ages, or a car might lose value after being damaged in an accident.

In accounting, depreciation allocates the cost of an asset over its useful life to smooth out large purchases in financial statements. Depreciation expenses are tax-deductible in the U.S., making it an important consideration for businesses.

Methods of Depreciation

There are many methods for distributing depreciation over an asset's useful life. The total depreciation amount for any asset will be identical regardless of the method used.

Straight Line: Equal depreciation each year over the asset's useful life.

Double Declining Balance: Accelerated depreciation with higher amounts in early years.

Sum of Years' Digits: Accelerated method using a fraction based on remaining years.