ToolBark
Finance

Depreciation Calculator

Generate year-by-year asset depreciation schedules instantly

Asset Details

Summary

Asset Cost

$50,000.00

Salvage Value

$5,000.00

Total Depreciation

$45,000.00

Annual Depreciation

$4,500.00

Formula: ($50,000.00$5,000.00) ÷ 10 years = $4,500.00 / year

Depreciation Schedule

Straight-Line
YearOpening ValueDepreciationAccumulatedClosing Value
1$50,000.00$4,500.00$4,500.00$45,500.00
2$45,500.00$4,500.00$9,000.00$41,000.00
3$41,000.00$4,500.00$13,500.00$36,500.00
4$36,500.00$4,500.00$18,000.00$32,000.00
5$32,000.00$4,500.00$22,500.00$27,500.00
6$27,500.00$4,500.00$27,000.00$23,000.00
7$23,000.00$4,500.00$31,500.00$18,500.00
8$18,500.00$4,500.00$36,000.00$14,000.00
9$14,000.00$4,500.00$40,500.00$9,500.00
10$9,500.00$4,500.00$45,000.00$5,000.00
Total$45,000.00$45,000.00$5,000.00

Method Comparison

Straight-Line (SL)

Spreads the depreciable cost evenly across the asset's useful life. Simple, predictable, and preferred for assets with uniform usage (e.g. office furniture, buildings).

Declining Balance (DB)

Front-loads depreciation — higher expense in early years, lower later. Best for assets that lose value quickly (e.g. computers, vehicles). Double-Declining (2×) is the most common variant.

About

A depreciation calculator helps businesses and accountants spread the cost of a fixed asset over its useful life for tax and financial reporting purposes. Choose between the straight-line method — which applies an equal expense every year — or declining-balance depreciation, which front-loads expenses in early years. Enter your asset cost, salvage value, and useful life to get a complete schedule instantly.

FAQ
What is the difference between straight-line and declining-balance depreciation?+

Straight-line depreciation deducts the same fixed amount every year: (Cost − Salvage Value) ÷ Useful Life. Declining-balance depreciation applies a fixed percentage to the remaining book value each year, resulting in larger deductions early in the asset's life and smaller ones later. Double-declining balance (2×) is the most widely used variant.

What is salvage (residual) value?+

Salvage value — also called residual value or scrap value — is the estimated worth of an asset at the end of its useful life. It reduces the total depreciable amount: only the difference between original cost and salvage value is depreciated.

When should I use declining-balance instead of straight-line?+

Use declining balance for assets that lose value quickly or become obsolete early — like computers, vehicles, or machinery. Straight-line is simpler and better suited for assets with steady, predictable use, such as buildings, furniture, or long-term equipment.

What does the switch-over to straight-line mean in declining balance?+

In standard double-declining balance accounting, you switch from the DB method to straight-line in the year that straight-line depreciation (on the remaining depreciable value) yields a higher deduction than DB. This calculator handles that switch automatically, so the asset fully depreciates to its salvage value.

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