How to use the Depreciation Calculator
This tool shows how an asset loses value year by year using straight-line or double-declining balance methods.
Open the Depreciation Calculator →
What you need to enter
- Asset cost ($)
- Salvage value ($)
- Useful life (years)
- Method
The formula
Straight-line = (cost − salvage) ÷ life. Double-declining = book value × 2 ÷ life, never below salvage.
Worked example
Using the default values in the calculator:
- Asset cost ($): 25000
- Salvage value ($): 3000
- Useful life (years): 5
- Method: Straight-line
| Year 1 depreciation | $4,400.00 |
| Total depreciation | $22,000.00 |
| Final book value | $3,000.00 |
Tips for better results
- Use the method your accountant or tax authority requires.
- Check salvage value assumptions.
Common mistakes to avoid
- Depreciating below salvage value.
- Mixing tax and accounting depreciation.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.