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Depreciation Calculator

Estimate annual depreciation, accumulated depreciation, and current book value using straight-line or declining balance methods.

Depreciation Calculator

Use this free depreciation calculator to estimate annual depreciation expense, accumulated depreciation, and current book value using either the straight-line method or the declining balance method. It works well alongside the ROI Calculator, the Profit Margin Calculator, and the wider Financial Calculators category.

Modify the values and click the Calculate button to use the depreciation calculator.
Depreciation Method

Straight-line spreads depreciation evenly. Declining balance accelerates depreciation into earlier years.

Asset Information
Other Information

Results

asset view
Straight-Line Depreciation Loaded

The selected year shows $9,000.00 of straight-line depreciation and a current book value of $32,000.00.

Depreciation Summary
Asset Cost$50,000.00
Salvage Value$5,000.00
Annual Depreciation$9,000.00
Monthly Depreciation$750.00
Accumulated Depreciation$18,000.00
Current Book Value$32,000.00
Asset Position
Useful Life5 years
Years Elapsed2 years
Depreciable Base$45,000.00
Remaining Depreciable Value$27,000.00
Depreciation Used40.0%
Declining Rate0.0%

Depreciation schedule

Year-by-year view of opening book value, annual depreciation expense, accumulated depreciation, and ending book value.

YearOpening book valueDepreciationAccumulated depreciationEnding book value
1$50,000.00$9,000.00$9,000.00$41,000.00
2$41,000.00$9,000.00$18,000.00$32,000.00
3$32,000.00$9,000.00$27,000.00$23,000.00
4$23,000.00$9,000.00$36,000.00$14,000.00
5$14,000.00$9,000.00$45,000.00$5,000.00

What is a depreciation calculator?

A depreciation calculator is an accounting and asset-planning tool that estimates how much of an asset's value should be recognized as expense over time. It helps you translate an upfront asset purchase into a year-by-year book-value view instead of treating the full cost as if it disappeared all at once.

This is useful when you want to understand fixed-asset usage, compare depreciation methods, or forecast the remaining carrying value of equipment, vehicles, or other business assets. For broader business planning, compare the output with the Profit Margin Calculator, the ROI Calculator, and the Financial Calculators hub.

How this calculator works

In straight-line mode, the calculator subtracts salvage value from the original asset cost to find the total depreciable base, then divides that amount evenly across the useful life. This produces the same annual depreciation amount each year until the asset reaches its residual value.

In declining balance mode, the calculator applies a fixed annual percentage to the remaining book value, which makes depreciation heavier in early years and lighter later. In both modes, the schedule stops the asset from falling below the entered salvage value. If you want to compare the asset's accounting value with investment performance, continue into the Present Value Calculator or the ROI Calculator.

Worked example

The default example uses an asset cost of $50,000.00, a salvage value of $5,000.00, and a five-year useful life so you can quickly compare even depreciation versus accelerated depreciation.

Example inputs

Asset cost$50,000.00
Salvage value$5,000.00
Useful life5 years
Years elapsed2 years

Example result

In the default straight-line example, the asset has a depreciable base of $45,000.00, which creates an annual depreciation expense of $9,000.00. After the selected elapsed years, accumulated depreciation reaches $18,000.00 and the remaining book value is $32,000.00.

Frequently asked questions

A depreciation calculator estimates how much value an asset loses over time, how much depreciation has already been recognized, and what book value remains after a chosen number of years.

Related financial tools

Continue from asset accounting into pricing, profitability, valuation, and return comparisons with these related tools.

If you are evaluating asset performance beyond accounting depreciation, it also helps to review the ROI Calculator, the Profit Margin Calculator, and the Present Value Calculator before making pricing or replacement decisions.

Explore This Tool in Context

Depreciation Calculator is part of the Financial Calculators collection. If you want a broader view of similar workflows, open the Financial Calculators category page or browse all QuickTools categories.

Common next steps after this tool include Estate Tax Calculator, Social Security Calculator and Annuity Payout Calculator.

More in Financial Calculators

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