Free Depreciation Schedule Calculator
Build a full depreciation schedule for any asset. Choose the method, set the cost, salvage value, useful life and the month it went into use, and compare methods side by side.
Depreciation Schedule Calculator: Build a full depreciation schedule for any asset. Choose the method, set the cost, salvage value, useful life and the month it went into use, and compare methods side by side. It is free, needs no sign-up and runs in your browser. How to use it: 1) pick a depreciation method and enter the asset cost, salvage value and useful life; 2) set the month the asset went into use and when your financial year starts; 3) read the year by year schedule, compare methods and download it as CSV or PDF. Depreciation spreads the cost of an asset, such as a vehicle, machine or computer, over the years you use it. The calculator builds a year by year schedule with the opening book value, depreciation, accumulated depreciation and closing book value.
How the depreciation calculator works
Depreciation spreads the cost of an asset, such as a vehicle, machine or computer, over the years you use it. The calculator builds a year by year schedule with the opening book value, depreciation, accumulated depreciation and closing book value. It runs in your browser and works offline.
Formulas
- Straight-line: (Cost – Salvage) / Life each year.
- Declining balance: Book value x Rate. You choose the rate.
- Double declining balance: Book value x (2 / Life).
- Sum-of-the-years digits: (Cost – Salvage) x Remaining life / (n(n+1)/2).
- Units of production: (Cost – Salvage) / Total units x Units used in the year.
Declining methods never go below the salvage value. You can switch to straight-line when it gives a larger charge, and the last year takes the book value down to salvage.
Partial first year
If the asset starts mid-year, the first financial year gets only the months in use. Each method year is then split across two financial years, so a 5 year asset bought in April with a July year end has six financial years in its schedule.
Limitations
Tax depreciation often follows its own rates, allowances and conventions that differ from book depreciation, and these vary by country. The schedule is for planning and bookkeeping support only. It is not tax or accounting advice, so confirm the method and rates with your accountant.
Depreciation Calculator FAQs
How do you calculate straight-line depreciation?
Subtract the salvage value from the cost and divide by the useful life in years. An asset costing 30,000 with a 5,000 salvage value and a 5 year life depreciates by 5,000 a year, or about 416.67 a month. The book value falls by the same amount each year until it reaches 5,000.
What is double declining balance depreciation?
It is an accelerated method that applies twice the straight-line rate to the remaining book value each year. For a 5 year asset the rate is 40%. It gives bigger charges in the early years and smaller ones later, and the book value is never taken below the salvage value.
How does a partial first year work?
If you start using an asset partway through your financial year, only the months in use count in the first year. Buy in November with a January year start and the first year gets 2 of 12 months. The remainder flows into the following years, adding one extra year to the schedule.
Which depreciation method should I use?
Straight-line is the simplest and most common for book purposes. Declining balance suits assets that lose value quickly, such as vehicles and computers. Units of production suits machines whose wear follows usage. Your tax authority may require a specific method, so check with your accountant before filing.
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