What is the Depreciation Calculator?
The depreciation calculator is a free online tool that helps you work out depreciation quickly and accurately. It uses the standard formula Straight line = (cost - salvage)/life; DDB rate = 2/life on book value and shows the result instantly as you type, along with a full breakdown so you can see exactly how the answer was reached.
How to use this calculator
- Enter cost and salvage value.
- Enter useful life.
- Pick a method.
- See depreciation.
Formula used
Straight line = (cost - salvage)/life; DDB rate = 2/life on book valueExplanation of each input
- Asset cost โ the asset cost used in the calculation.
- Salvage value โ the salvage value used in the calculation.
- Useful life (years) โ the useful life used in the calculation.
- Method โ the method used in the calculation.
Understanding your result
- First-year depreciation โ the calculated first-year depreciation.
- Straight-line per year โ the calculated straight-line per year.
Step-by-step calculation
For the example values 100000, 10000, 5y, SL:
- Apply the formula:
Straight line = (cost - salvage)/life; DDB rate = 2/life on book value - Substitute the values: (100000-10000)/5
- Result: 18000 per year
Worked example
| Inputs | 100000, 10000, 5y, SL |
|---|---|
| Working | (100000-10000)/5 |
| Result | 18000 per year |
Benefits and practical uses
This calculator saves you time and reduces errors when you need depreciation. It is useful for students, professionals and anyone who wants a fast, reliable answer without manual calculation. Results update instantly, work in your browser and can be copied or shared in one click.
Assumptions and limitations
- Annual depreciation; ignores tax rules.
Frequently asked questions
Which method should I use?
Straight line is simplest; declining-balance front-loads depreciation.
Disclaimer: This calculator provides estimates for general information only and is not financial advice. Returns are illustrative and not guaranteed; consult a qualified financial adviser before making decisions.