Calculate straight-line, double declining balance, sum-of-years-digits, and units-of-production depreciation with full schedules
| Year 1 rate of basis | Category | What it means |
|---|
| Period | Depreciation | Accumulated | Book value | Tax shield |
|---|
| Method | Year 1 | Year 2 | Year 3 | Total | Acceleration |
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| Asset class | Typical life | Common method | Your asset vs. benchmark |
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| Metric | Value | Notes |
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Faiq Ur Rahman is a web designer, digital product developer, and founder of Toolraxy, a growing platform of web-based calculators and utility tools. He specializes in building structured, user-friendly tools focused on health, finance, productivity, and everyday problem-solving.
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Depreciation spreads the cost of a long-lived asset across the years it helps generate revenue. A $50,000 machine that lasts five years doesn’t hit the income statement all at once. It gets expensed gradually. The method you choose determines how that expense is timed.
Straight-line is the default most businesses use because it’s simple and predictable. Accelerated methods push more depreciation into the early years, which lowers taxable income sooner and preserves cash. Units of production ties the expense to actual usage, which suits equipment whose wear depends on how hard it’s worked. This calculator handles all four and shows you the trade-offs numerically.
Select your currency from the dropdown.
Enter the asset cost, which is what you paid for it.
Add the salvage value, or set it to zero if the asset will be worthless.
Set the useful life in years. Three to seven is typical for equipment.
Choose your period mode: annual, quarterly, or monthly.
Pick a depreciation method from the primary method dropdown.
Adjust the declining balance factor if you’re using an accelerated method.
Enter a tax rate to see the tax shield, then hit Calculate.
Depreciable basis is the starting point. It equals asset cost minus salvage value. That’s the total amount you’ll write off over the asset’s life.
Each method then allocates that basis differently:
Formula: Straight-line = (Cost − Salvage) ÷ Useful Life
Formula: Double Declining = Book Value × (Factor ÷ Life)
Formula: SYD = Basis × (Remaining Years ÷ Sum of Years)
Formula: Units of Production = (Basis ÷ Total Units) × Units Produced
Straight-line produces an identical expense every year. Double declining applies a fixed percentage to the remaining book value, so the expense shrinks over time. Sum-of-years-digits uses a declining fraction of the basis. Units of production multiplies a per-unit rate by actual output.
The calculator applies the declining factor to the annual rate and converts it to the period rate you selected. Depreciation stops once book value hits salvage. Nothing depreciates below residual value.
A delivery company buys a used box truck for $68,000. Salvage value after seven years is $9,000. Depreciable basis: $59,000.
Straight-line: $59,000 ÷ 7 = $8,429 per year. Year 1 rate of basis: 14.29%.
Double declining: annual rate is 2 ÷ 7 = 28.57%. Year 1 depreciation is $68,000 × 0.2857 = $19,428. Year 2 applies 28.57% to the remaining book value of $48,572, giving $13,878. The expense falls each year.
SYD: sum of years is 7 × 8 ÷ 2 = 28. Year 1 fraction is 7/28 = 25%. Depreciation: $14,750. Year 2 fraction is 6/28, giving $12,643.
At a 21% tax rate, straight-line saves $1,770 in year 1. Double declining saves $4,080. Same total shield over seven years, but the accelerated method delivers more of it early.
Annual depreciation equals asset cost minus salvage value, divided by useful life. A $40,000 asset with $4,000 salvage and a five-year life depreciates $7,200 per year.
It applies twice the straight-line rate to the remaining book value each year. The expense is largest in year 1 and shrinks annually. Depreciation stops when book value reaches salvage.
Both accelerate depreciation. SYD uses a declining fraction of the original basis. Double declining uses a fixed percentage on shrinking book value. Double declining is more aggressive in the early years.
Use it when an asset’s wear depends on usage rather than time. Machinery, vehicles, and aircraft are common examples. The expense tracks actual output instead of calendar years.
Yes, under accelerated methods. Once book value hits salvage value, depreciation stops. This calculator shows zero for any remaining periods in those cases.
It’s the tax savings from deducting depreciation. Multiply the expense by your marginal rate. At 21%, $10,000 of depreciation saves $2,100 in taxes.
Yes. Both terms refer to the estimated value of the asset at the end of its useful life. The calculator uses the term interchangeably in its inputs and outputs.
It reduces taxable income, which lowers your tax bill. Accelerated methods front-load that benefit. The total deduction over the asset’s life is the same regardless of method.
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