📉 Depreciation Calculator
Create a full depreciation schedule with straight-line, double declining balance, sum-of-the-years’ digits or MACRS, and download it as CSV.
| Year | Beginning value | Depreciation | Accumulated | Ending value |
|---|---|---|---|---|
| 1 | $10,000.00 | $1,800.00 | $1,800.00 | $8,200.00 |
| 2 | $8,200.00 | $1,800.00 | $3,600.00 | $6,400.00 |
| 3 | $6,400.00 | $1,800.00 | $5,400.00 | $4,600.00 |
| 4 | $4,600.00 | $1,800.00 | $7,200.00 | $2,800.00 |
| 5 | $2,800.00 | $1,800.00 | $9,000.00 | $1,000.00 |
What Depreciation Calculator Does
This depreciation calculator builds a complete year-by-year schedule for an asset using any of five methods: straight-line, double declining balance, 150% declining balance, sum-of-the-years’ digits, or MACRS — the system used for most U.S. business property on tax returns. Each row shows the beginning book value, that year’s depreciation, accumulated depreciation and ending book value, with a chart of the annual amounts and a CSV download for your spreadsheet.
The book methods take a cost, salvage value and useful life; the declining-balance methods switch to straight-line when that gives a larger deduction and never go below salvage. MACRS uses the IRS half-year percentages for 3-, 5-, 7-, 10-, 15- and 20-year property exactly as published in IRS Publication 946, and ignores salvage value as the tax rules require.
How to Use Depreciation Calculator
- Choose a depreciation method
- Enter the asset cost
- Enter salvage value and useful life, or a MACRS recovery period
- Review the year-by-year schedule and chart
- Download the schedule as a CSV for your spreadsheet
Formula Used by Depreciation Calculator
Straight-line
Annual depreciation = (cost − salvage) ÷ useful life
Worked example
$10,000 cost, $1,000 salvage, 5 years.
- $10,000 − $1,000 = $9,000
- $9,000 ÷ 5
Result: $1,800 a year.
Double declining balance
Depreciation = book value at start of year × (2 ÷ useful life)
Worked example
Same asset.
- Rate = 2 ÷ 5 = 40%
- Year 1: $10,000 × 40% = $4,000
- Year 2: $6,000 × 40% = $2,400
- Year 3: $3,600 × 40% = $1,440
Result: $4,000, $2,400, $1,440, $864, then $296 to reach the $1,000 salvage value.
MACRS Half-Year Rates (GDS), Percent of Cost
| Year | 3-year | 5-year | 7-year |
|---|---|---|---|
| 1 | 33.33 | 20.00 | 14.29 |
| 2 | 44.45 | 32.00 | 24.49 |
| 3 | 14.81 | 19.20 | 17.49 |
| 4 | 7.41 | 11.52 | 12.49 |
| 5 | — | 11.52 | 8.93 |
| 6 | — | 5.76 | 8.92 |
| 7 | — | — | 8.93 |
| 8 | — | — | 4.46 |
How to Read Your Result
Book vs tax depreciation
Companies often use straight-line in their financial statements, because it spreads cost evenly and is easy to explain, while using MACRS on tax returns to take larger deductions earlier. Both are legitimate; they answer different questions and are tracked separately.
Why accelerated methods
Many assets — vehicles, computers — lose value fastest when new. Accelerated methods match that pattern and, for taxes, move deductions earlier, which is worth more because money saved now can be reinvested. Total depreciation over the asset’s life is the same.
Limitations & Accuracy Notes
- MACRS uses the GDS half-year convention only; the mid-quarter convention, ADS and residential or nonresidential real property tables are not included.
- Section 179 expensing, bonus depreciation and luxury auto limits are not applied.
- This is a planning tool, not tax advice.
Frequently Asked Questions
How do you calculate straight-line depreciation?
What is double declining balance?
What is sum-of-the-years’ digits?
What is MACRS depreciation?
Which MACRS class is my asset?
Does this include Section 179 or bonus depreciation?
References & Further Reading
- IRS Publication 946 — How To Depreciate Property — MACRS classes and Table A-1 percentages