Depreciation Calculator

This Depreciation Calculator helps you estimate how much an asset loses value over time. Whether you're calculating vehicle depreciation, equipment cost for accounting, or tax write-offs — this tool supports multiple methods including Straight-Line, Declining Balance, and Sum-of-Years-Digits.

How to Use the Depreciation Calculator

Enter the following:

• Initial cost of the asset
• Salvage value (value at the end of useful life)
• Useful life in years
• Depreciation method (SL, DB, SYD)

The calculator returns a year-by-year depreciation schedule and remaining asset value.

Depreciation Formulas

Straight-Line (SL):

Annual Depreciation = (Cost – Salvage) ÷ Useful Life

Declining Balance (DB):

Depreciation = Book Value × Depreciation Rate

Sum-of-Years-Digits (SYD):

Depreciation = (Remaining Life ÷ SYD) × (Cost – Salvage)
SYD = n(n + 1)/2

Example

For an asset worth $10,000 with $1,000 salvage value and a 5-year life:

• Straight-Line: $1,800/year
• SYD (Year 1): $3,000, then reduces each year
• DB (20%): Starts high, lowers over time

Common Use Cases

• Business accounting & tax filing
• Asset management for equipment or vehicles
• Financial planning for capital expenditure
• Balance sheet depreciation entries

Frequently Asked Questions (FAQs)

What is depreciation?

Depreciation is the reduction in value of an asset over time due to wear, usage, or obsolescence.

Which depreciation method is best?

Straight-line is simplest. Declining balance is better for fast-depreciating assets. SYD offers moderate flexibility.

What is salvage value?

Salvage value is the estimated residual value of the asset at the end of its useful life.

Can this be used for tax depreciation?

Yes, this calculator can help estimate values, but always refer to local tax codes or IRS guidelines.

Is depreciation linear?

Only with the Straight-Line method. Other methods are accelerated and reduce faster in earlier years.

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