Depreciation Calculator

Annual depreciation = (cost − salvage value) ÷ useful life. A $10,000 asset with a $1,000 salvage over 5 years depreciates $1,800 per year, every year, until it reaches its salvage value.

DDB is an accelerated method: it applies twice the straight-line rate (2 ÷ life) to the current book value each year, so more expense is taken early. For a 5-year asset the rate is 40%, so a $10,000 asset depreciates $4,000 in year one. It never drops below salvage value.

Straight-line is simplest and spreads cost evenly — common for financial statements. Accelerated methods like DDB (or tax systems like MACRS) front-load deductions, which can defer taxes. The right choice depends on accounting standards and tax rules; ask your accountant.

Salvage (or residual) value is what you expect the asset to be worth at the end of its useful life. Depreciation only applies to the depreciable base — cost minus salvage — because you do not write off value you expect to recover.

No. This calculator covers the classic straight-line and double-declining methods. U.S. tax depreciation (MACRS) uses IRS tables, conventions, and asset classes that differ from book depreciation. Use this for planning and consult a tax professional for filings.