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BookkeepKit

Depreciation Calculator

Build a book depreciation schedule with straight line, double declining balance, 150% declining balance or sum of the years' digits, including salvage value and a partial first year.

Asset

Schedule

Schedule
YearOpening book valueDepreciationAccumulatedClosing book value
2026$25,000.00$4,500.00$4,500.00$20,500.00
2027$20,500.00$4,500.00$9,000.00$16,000.00
2028$16,000.00$4,500.00$13,500.00$11,500.00
2029$11,500.00$4,500.00$18,000.00$7,000.00
2030$7,000.00$4,500.00$22,500.00$2,500.00

How it's calculated

  1. Depreciable amount = cost − salvage = $25,000.00 − $2,500.00 = $22,500.00. Book value never goes below salvage.
  2. Straight line: $22,500.00 ÷ 5 years = $4,500.00 per full year.
  3. For tax returns, most US businesses use MACRS instead of these methods. Use the MACRS calculator for federal tax depreciation.

How it works

  1. 1

    Describe the asset

    Cost, salvage value, useful life in years, and the year it was placed in service.

  2. 2

    Choose a method

    Straight line spreads the cost evenly; the accelerated methods expense more in the early years.

  3. 3

    Review the schedule

    Depreciation, accumulated depreciation and book value for every year, with the formula used.

The formulas

  • Straight line: (cost − salvage) ÷ useful life, each year.
  • Double declining balance: book value at the start of the year × 2 ÷ useful life.
  • 150% declining balance: book value × 1.5 ÷ useful life.
  • Sum of the years' digits: (cost − salvage) × remaining life ÷ (1 + 2 + … + life).

Choosing useful life and salvage

Useful life is how long the business expects to use the asset, not how long it physically lasts. Salvage value is what you expect to sell it for at the end. Both are estimates; document how you chose them and apply the same policy to similar assets.

Frequently asked questions

Which method should I use?

Straight line is the most common for financial statements because it's simple and matches assets that wear evenly. Accelerated methods suit assets that lose value or usefulness quickly, like vehicles or technology.

How does the declining balance method reach salvage value?

Declining balance never reaches salvage on its own, so the calculator switches to straight line in the year that gives the larger deduction, and never depreciates below salvage. The switch year is marked in the schedule.

What is a partial first year?

If the asset was placed in service in, say, October, only 3 months of depreciation belong to the first year. The remaining months are taken in an extra year at the end.

Is this the same as tax depreciation?

Not usually. US federal tax returns use MACRS, which ignores salvage value and uses IRS tables. Use the MACRS calculator for tax.

How do I record depreciation?

Debit Depreciation Expense and credit Accumulated Depreciation for the year's amount, monthly or annually.

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