Depreciation Calculator

Enter your asset's original cost, estimated salvage value at the end of its useful life, the number of years you'll use it, and your preferred depreciation method. The calculator builds a year-by-year schedule showing the annual deduction and remaining book value.

Straight-line: (Cost − Salvage) ÷ Life. Equal deductions every year. Predictable and simple.

Double Declining Balance: Year 1 = Book Value × (2 ÷ Life). Automatically switches to straight-line in later years when straight-line produces a higher deduction. Front-loads deductions — maximizes early tax savings.

Sum-of-Years-Digits: Each year's fraction = (Remaining Life ÷ Sum of All Year Digits). Also accelerated, but less aggressive than DDB.

Use Straight-Line when:

The asset produces consistent value throughout its life (commercial real estate, furniture, long-lived equipment). You prefer predictable, consistent deductions for financial reporting. Simplicity matters and tax savings timing is not a primary concern.

Use Accelerated Methods (DDB or SYD) when:

The asset loses value rapidly in early years (vehicles, computers, technology). You want maximum tax deductions now, especially if you expect lower income (and lower tax rates) in future years. You want to match higher early deductions to higher early maintenance costs for financial reporting accuracy.

Consider Section 179 or Bonus Depreciation:

For many qualifying business assets, the IRS allows you to deduct the full purchase price in Year 1 instead of spreading it over multiple years. Section 179 lets you deduct up to $1.16M (2024 limit) in the year of purchase. Bonus depreciation (being phased out) allowed 100% deduction — check current rates with your accountant. These options often produce far larger immediate deductions than any multi-year schedule.