Calculator

Depreciation Calculator

Compare straight-line and declining-balance depreciation side by side, year by year, for the same asset.

← Read the Depreciation concept page

Asset cost

Estimated salvage value

Useful life (years)

yrs

Declining-balance accelerator (2 = double-declining)

Straight-line: annual expense

$600.00

every year for 10 years

Declining balance: year 1 expense

$1,200.00

Declining balance: total expensed

$5,355.75

How the math works

Straight-line spreads the cost evenly: $6,000.00 − $0.00 salvage, divided by 10 years, is $600.00 every year. Declining balance instead applies a fixed rate to whatever book value is left, front-loading the expense:

Year  Straight-line    Declining balance    SL book value    DB book value
1     $600.00          $1,200.00            $5,400.00        $4,800.00
2     $600.00          $960.00              $4,800.00        $3,840.00
3     $600.00          $768.00              $4,200.00        $3,072.00
4     $600.00          $614.40              $3,600.00        $2,457.60
5     $600.00          $491.52              $3,000.00        $1,966.08
6     $600.00          $393.22              $2,400.00        $1,572.86
7     $600.00          $314.57              $1,800.00        $1,258.29
8     $600.00          $251.66              $1,200.00        $1,006.63
9     $600.00          $201.33              $600.00          $805.31
10    $600.00          $161.06              $0.00            $644.25

Both methods expense the same total amount over the asset's life ($6,000.00) — declining balance just recognizes more of it in the earlier years and less in the later years, instead of spreading it evenly.