How to use this calculator
Enter the asset cost, expected salvage value, and useful life, then select the method. Read the annual charge alongside the remaining book value. This is an accounting schedule based on your assumptions; market value and tax depreciation can follow different rules.
Examples
Straight-line asset
An $11,000 asset with $1,000 salvage value and a five-year life has a
$10,000 depreciable basis. Straight-line depreciation is
10,000 / 5 = $2,000 per year. After Year 1, book value is $9,000;
after Year 5, it is $1,000.
Double-declining balance on the same asset
Choose Declining Balance and factor 2. The annual rate is 2 / 5 = 40% of
opening book value, so Year 1 depreciation is $4,400, leaving $6,600.
Year 2 depreciation is 6,600 × 40% = $2,640, leaving $3,960.
The charge falls as book value falls; it is not 40% of the original cost
every year.
Formula
(cost − salvage) ÷ useful life. Declining balance multiplies opening book value by factor ÷ useful life. Sum-of-years' digits weights the depreciable basis by the remaining life over n(n + 1) ÷ 2.Reading the schedule
Depreciation Amount is that row's expense; Accumulated Depreciation adds the expenses to date. Ending Book Value is the amount carried into the next row. The calculator caps charges at salvage value, but its declining balance method does not automatically switch to straight line or force the final row down to salvage. A schedule can therefore finish above salvage.
The optional first-year convention prorates the initial charge and can add a final partial row. Inspect the actual schedule rather than assuming a half-year convention is equivalent to U.S. tax treatment. Round to Dollars rounds each charge, which can also affect the remaining book value.
Accounting schedule versus tax depreciation
This is a general book-depreciation schedule from the cost, salvage value, useful life, method, and first-year convention you enter. It does not determine U.S. tax depreciation: MACRS may require a property class, recovery period, convention, method switch, business-use percentage, basis adjustments, Section 179, bonus depreciation, and recapture rules. Use IRS Publication 946 for tax treatment.