Depreciation Calculator - Asset Value Decline

Finance

Asset Depreciation Calculator

Last updated: July 11, 2026

Calculate depreciation over time using Straight-Line or Declining Balance methods. Plan asset purchases and understand book value for accounting and tax purposes.

Asset Cost ($)

Salvage Value ($)

Useful Life (years)

Method

How to Use This Calculator

Enter the Asset Cost (original purchase price).
Enter the Salvage Value (estimated value at end of life).
Set the Useful Life in years and select a depreciation Method.
Click Calculate to see annual depreciation and a full year-by-year schedule.

Formula

Straight-Line (SL):

Annual Depreciation = (Cost − Salvage) / Useful Life

Declining Balance (DB):

Rate = Multiplier / Useful Life
Annual Depreciation = Rate × Book Value at Beginning of Year

The multiplier is 2.0 for double-declining (200%) or 1.5 for 150% declining balance.

Examples

Company Vehicle: $30,000 car, $5,000 salvage, 5 years SL = $5,000 depreciation per year. Book value drops from $30,000 to $5,000 evenly.

Computer Equipment: $2,000 laptop, $0 salvage, 3 years SL = $666.67/year. Fully depreciated to $0 after 3 years.

Heavy Machinery: $100,000 machine, 10 years DB(200%) = 20% rate. Year 1: $20,000, Year 2: $16,000. Declining balance front-loads depreciation.

Frequently Asked Questions

What is depreciation?

Depreciation is the systematic allocation of an asset's cost over its useful life, reflecting wear and tear, obsolescence, or aging.

Which method should I use?

Straight-line is simplest and gives equal expense each year. Declining balance is better for assets that lose value faster early on (technology, vehicles).

What is salvage value?

Salvage (or residual) value is the estimated amount you can sell an asset for at the end of its useful life.

Can book value go below salvage value?

In declining balance, the asset is not depreciated below its salvage value. The calculator enforces this floor automatically.