Depreciation allocates the cost of a tangible asset over its useful life. This calculator builds straight-line and double declining balance schedules for equipment, vehicles, and other capital assets.
How to use this calculator
- Enter the asset's original cost.
- Set useful life in years.
- Enter expected salvage (residual) value at end of life.
- Choose straight-line or double declining balance method.
- Review the depreciation schedule, book value trend, and accounting guidance.
Formula
Straight-line: (Cost − Salvage) ÷ Useful life each year. Double declining balance: Book value × (2 ÷ Useful life) each year until salvage value is reached.
Example
A $50,000 asset with 5-year life and $5,000 salvage depreciates $9,000 per year under straight line. Double declining balance front-loads expense in early years.
Frequently asked questions
What is straight-line depreciation?
An equal expense each year over the asset's useful life. Simple and widely used for book accounting.
When is double declining balance used?
When an asset loses value faster early in its life (technology, vehicles). It accelerates expense in the first years.
Is this the same as tax depreciation (MACRS)?
No. U.S. tax depreciation follows IRS tables (MACRS, Section 179). This calculator models common book methods for planning.
What is salvage value?
The estimated residual value at the end of useful life. Depreciation stops when book value reaches salvage.