Use this free online depreciation calculator to work out how much value an asset loses each year using either the Straight-Line or Declining Balance (double declining) method. Enter the asset cost, salvage value, and useful life to get an annual breakdown and a year-by-year depreciation schedule.
How to Use the Depreciation Calculator
Enter the original purchase price in the "Asset Cost" field.
Enter the estimated resale value at the end of its useful life in "Salvage Value".
Enter the number of years the asset will be used in "Useful Life (years)".
Choose "Straight-Line" for equal yearly depreciation, or "Declining Balance" for an accelerated method.
Click "Calculate Depreciation" to view the annual/total depreciation and the year-by-year schedule.
Frequently Asked Questions
Straight-Line depreciation spreads the asset's loss in value evenly across its useful life using the formula (Asset Cost − Salvage Value) ÷ Useful Life. Declining Balance uses the double declining rate (2 ÷ Useful Life) applied to the asset's remaining book value each year, so depreciation is higher in the early years and tapers off over time.
An asset can only depreciate down to its salvage value, so the cost must exceed the salvage value for there to be any depreciation to calculate. If the values entered don't meet this condition (or if useful life isn't a whole number greater than zero), the calculator shows a validation message instead of a result.
No. Under the Declining Balance method the calculator caps each year's depreciation so the book value never falls below the salvage value you entered, and under Straight-Line the final year is set exactly to the salvage value.
Yes, it's completely free and requires no sign-up. You can recalculate as many times as you like with different costs, salvage values, and useful life periods.