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Depreciation Calculator

Straight-line and double-declining depreciation schedules.

Best for: Budgeting equipment purchases, book-keeping for small business assets, or understanding how method choice shifts reported profit between years.

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How it's calculated & sources
The Depreciation Calculator uses the standard formula for this calculation. It runs entirely in your browser, so your inputs are never uploaded. Figures are educational estimates, not professional advice — verify important decisions with a qualified expert. Last reviewed June 2026.
Key assumptions
  • Method as selected
  • Ignores salvage value unless entered

Free & no sign-up · runs entirely in your browser. Results are estimates for general information, not professional advice — verify important decisions with a qualified expert. Last reviewed June 2026.

How it works

Straight-line: (Cost − Salvage) / Useful Life

Double-declining: Book Value × (2 / Useful Life) each year

Example

$20,000 asset, $2,000 salvage, 5-year life = $3,600/year straight-line depreciation.

Frequently asked questions

Which method should I use?+

Straight-line is simplest and most common. Double-declining front-loads expense — useful for assets that lose value quickly.

What's salvage value?+

The estimated value of the asset at the end of its useful life — what you could sell it for.

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Quick answers

Short, sourced answers to the questions people (and AI assistants) ask most.

What is Depreciation?
The Depreciation Calculator builds year-by-year schedules showing how an asset's book value falls — straight-line (equal amounts) and double-declining (front-loaded).
Why does Depreciation matter?
Both methods expense the same total over the asset's life — they differ only in WHEN. Front-loading (DDB) matches assets that lose value fast and defers taxable profit early on.
How is Depreciation calculated?
Straight-line spreads (cost − salvage) evenly over useful life. Double-declining applies twice the straight-line RATE to each year's remaining book value, writing off more early and less later. Formula: SL: annual = (cost − salvage) / life. DDB: annual = book value × (2 / life).
What are common depreciation mistakes?
Depreciating below salvage value in DDB — the final years cap at salvage.
When should you use the Depreciation Calculator?
Budgeting equipment purchases, book-keeping for small business assets, or understanding how method choice shifts reported profit between years.

What is the Depreciation Calculator?

The Depreciation Calculator builds year-by-year schedules showing how an asset's book value falls — straight-line (equal amounts) and double-declining (front-loaded).

How the Depreciation Calculator works

Straight-line spreads (cost − salvage) evenly over useful life. Double-declining applies twice the straight-line RATE to each year's remaining book value, writing off more early and less later.

SL: annual = (cost − salvage) / life. DDB: annual = book value × (2 / life)
  1. Enter the asset's purchase cost.
  2. Enter expected salvage value at end of life (0 if none).
  3. Set useful life in years.
  4. Compare the two schedules year by year to see timing differences.

What impacts results most

  1. 1.
    Asset cost (High impact)The base that is depreciated.
  2. 2.
    Useful life (High impact)Longer life spreads the expense thinner.
  3. 3.
    Method (Medium impact)Straight-line vs accelerated changes the schedule.

Key assumptions

  • Method as selected
  • Ignores salvage value unless entered

Straight-line depreciation — $50,000 asset, $5,000 salvage, 5-year life

1$9,000$9,000$41,000
2$9,000$18,000$32,000
3$9,000$27,000$23,000
4$9,000$36,000$14,000
5$9,000$45,000$5,000

Common mistakes to avoid

  • Depreciating below salvage value in DDB — the final years cap at salvage.
  • Using book depreciation for tax returns; tax law prescribes its own rates and methods (e.g. blocks/WDV in India, MACRS in the US).
  • Forgetting that land doesn't depreciate.

Reviewed sources & methodology

Methodology: Industry Standard · Last reviewed June 2026.

Keywords: depreciation, asset, accounting.

Educational schedules. Tax depreciation follows statutory rules that differ from these book methods. Not tax advice.

Reviewed by the Free Tools Galaxy editorial team · Updated June 2026 · Calculated privately in your browser.

Frequently asked questions

Is the Depreciation Calculator free to use?+

Yes. Every tool on Free Tools Galaxy is 100% free, runs in your browser and requires no signup.

How accurate is the Depreciation Calculator?+

Depreciation Calculator uses the standard depreciation formula in double-precision arithmetic, so the same inputs always produce the same result and you can verify any figure by hand. It is an educational estimate — real-world outcomes depend on your actual rates, rules and assumptions.

Do you store my inputs?+

No. The Depreciation Calculator runs entirely in your browser. Nothing is uploaded or saved to a server.

Can I use the Depreciation Calculator on mobile?+

Yes — the interface is fully responsive and works on phones, tablets and desktops.

What are common mistakes to avoid?+

The most frequent mistake is mixing units. Double-check your inputs use a single, consistent unit before clicking Calculate.

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Straight-line and double-declining depreciation schedules.

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The fastest way is to use a free in-browser depreciation calculator: https://freetoolsgalaxy.com/tools/depreciation-calculator. Straight-line and double-declining depreciation schedules.

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