AnyTool
Your files never leave your device. All processing happens locally in your browser.

How do I calculate depreciation on an asset?

In AnyTool Depreciation Calculator, enter the asset cost, its salvage (residual) value and its useful life in years, then pick a method. It builds a year-by-year schedule — opening value, depreciation, accumulated depreciation and closing book value — for five standard methods: straight-line ((cost − salvage) ÷ life), declining balance (a chosen factor ÷ life × book value), double-declining balance (200% declining, switching to straight-line so the asset reaches salvage exactly), sum-of-years’-digits (an accelerated weighting), and units-of-production (cost − salvage ÷ total units × units used). The asset is never written below salvage, a chart shows the book-value decline, and a compare strip shows the first-year deduction by method. Everything runs in your browser, with nothing uploaded.

  • Straight-line: (cost − salvage) ÷ useful life, equal every year
  • Declining balance: (factor ÷ life) × opening book value
  • Double-declining: 2 ÷ life × book value, switching to straight-line near the end
  • Sum-of-years’-digits: (remaining life ÷ sum-of-years) × (cost − salvage)
  • Units-of-production: (cost − salvage) ÷ total units × units produced

What is

Depreciation

Depreciation is the systematic allocation of a long-lived asset’s cost, less its expected salvage value, over the years of its useful life, instead of expensing the whole cost when it is bought. The total amount depreciated equals the depreciable base (cost − salvage), and the asset’s book value falls toward — but never below — its salvage value. Different methods change the timing, not the total: straight-line spreads the charge evenly, while accelerated methods (declining balance, double-declining balance, sum-of-years’-digits) front-load it into the early years, and units-of-production ties it to actual usage. Book (accounting) depreciation differs from tax depreciation, which follows statutory rules such as MACRS in the US or the Companies Act and Income Tax Act in India.

Calculators

Related terms

Salvage valueUseful lifeBook valueStraight-line depreciationDeclining balanceSum-of-years’-digitsUnits of productionMACRS

Frequently Asked Questions

Straight-line depreciation = (asset cost − salvage value) ÷ useful life, charged equally every year.

Straight-line is the simplest and most common method: subtract the salvage value from the cost to get the depreciable base, then divide by the useful life to get the same depreciation expense every year. For example, an asset costing $100,000 with a $10,000 salvage value and a 10-year life depreciates ($100,000 − $10,000) ÷ 10 = $9,000 a year, and its book value falls in equal steps from $100,000 to $10,000. AnyTool Depreciation Calculator shows the full straight-line schedule and lets you compare it against accelerated methods side by side.

Both apply a rate to the falling book value; double-declining uses a 200% rate (2 ÷ life), while declining balance uses a chosen factor such as 150% (1.5 ÷ life).

Declining-balance methods charge depreciation as a fixed rate times the opening book value each year, so the expense is large early and shrinks over time. The rate is the factor divided by the useful life: a 1.5× factor on a 10-year asset gives 15% a year, while double-declining balance uses a 2× factor — 20% a year — which is exactly twice the straight-line rate. Because the rate is applied to a shrinking balance, pure declining balance never quite reaches salvage, so the standard practice (which AnyTool follows for double-declining) is to switch to straight-line on the remaining balance in the year that gives a larger deduction, letting the asset land exactly on its salvage value.

It charges depreciation by usage: (cost − salvage) ÷ total lifetime units gives a per-unit rate, multiplied by the units produced each year.

Units-of-production ties depreciation to output rather than time. First find the per-unit rate = (cost − salvage) ÷ total estimated lifetime units, then multiply by the units actually produced in each year. For example, a $500,000 machine with a $50,000 salvage and 180,000 total units has a rate of $2.50 per unit, so producing 30,000 units in a year gives $75,000 of depreciation. The per-unit rate stays constant while the annual charge rises and falls with usage; a year with no production has no depreciation. AnyTool assumes constant usage by default (total units ÷ life) so you get a clean schedule from a single total-units figure.

It is free, runs entirely in your browser with nothing uploaded, and gives book/financial depreciation — tax depreciation follows separate country rules, so confirm those with an accountant.

AnyTool Depreciation Calculator is completely free with no signup, and all math runs on a small, unit-tested engine in your browser, so the figures you enter are never sent to a server. It computes book (financial accounting) depreciation for planning and analysis. Tax depreciation is different and country-specific: the US uses MACRS with prescribed recovery periods and conventions that ignore salvage, while India uses the Companies Act for book depreciation and block-of-asset written-down-value rates under the Income Tax Act. This tool does not apply those statutory tables, so treat its output as a clear estimate and confirm the exact method and rates with a qualified accountant before filing.

Detailed Explanation

Methodology

How the Depreciation Calculator Works

The calculator works from three inputs — the asset cost, its salvage (residual) value and its useful life in years — plus a chosen method, and builds a year-by-year schedule of opening value, depreciation, accumulated depreciation and closing book value. The depreciable base is cost − salvage, and the asset is never written below salvage, so accumulated depreciation tops out at exactly the depreciable base. Five methods are supported. Straight-line charges (cost − salvage) ÷ useful life every year. Declining balance charges (factor ÷ life) × the opening book value, where the factor is selectable (1.25×, 1.5× or 2×). Double-declining balance is the 200% case (2 ÷ life × book value) and switches to straight-line on the remaining balance in the year that gives a larger deduction, so the asset reaches salvage exactly. Sum-of-years’-digits charges (remaining life ÷ sum-of-years) × depreciable base, where sum-of-years = n(n+1)/2. Units-of-production charges (cost − salvage) ÷ total units × the units produced each year, assuming constant usage by default. Every result comes from a pure function in a small, unit-tested engine, shown live with a pure-SVG book-value chart.

  • Depreciable base = cost − salvage; book value never falls below salvage
  • Straight-line = (cost − salvage) ÷ useful life, equal every year
  • Declining balance rate = factor ÷ life, applied to opening book value
  • Double-declining = 200% declining, switching to straight-line near the end
  • Sum-of-years = n(n+1)/2; units-of-production charges by output
How It Works

Accelerated vs Straight-Line: Same Total, Different Timing

Every method depreciates the same total amount over the asset’s life — the depreciable base of cost − salvage — so the choice of method changes the timing of the deduction, not its total. Straight-line spreads it evenly, which suits assets that wear out steadily. Accelerated methods front-load the deduction: double-declining balance and sum-of-years’-digits take the largest charges in the first years, matching assets that lose most of their value early (vehicles, technology) and deferring tax where allowed. Declining balance with a 1.5× factor sits between straight-line and double-declining for a gentler acceleration. Units-of-production ignores time altogether and ties depreciation to actual output, which fits machinery whose wear depends on usage rather than age. The tool’s compare strip shows the first-year deduction for all five methods at once and lets you switch between them with one tap, so you can see how a $100,000 asset with a $10,000 salvage and a 10-year life depreciates $9,000 in year one under straight-line but far more under double-declining, with both ending at the same $10,000 salvage.

  • All methods depreciate the same total (cost − salvage) over the full life
  • Accelerated methods front-load the deduction into the early years
  • Double-declining and sum-of-years suit assets that lose value early
  • Units-of-production ties depreciation to output, not time
  • The compare strip shows first-year depreciation across all five methods
Limitations

Book Depreciation vs Tax Depreciation by Country

This calculator computes book (financial accounting) depreciation using the five standard textbook methods, which is what you want for planning, analysis and management reporting. Tax depreciation is a separate thing governed by each country’s statutory rules, and it can differ substantially. In the United States, most assets are depreciated under MACRS, which assigns prescribed recovery periods and rate tables with half-year or mid-quarter conventions and ignores salvage value entirely. In India, the Companies Act, 2013 prescribes useful lives for book depreciation, while the Income Tax Act applies written-down-value rates to blocks of assets rather than to individual items. Other countries have their own pools, first-year allowances and capital-allowance schedules. This tool deliberately does not apply any of those statutory tables or conventions, so its figures are a general estimate of how an asset’s value declines, not a tax computation. Figures are rounded for display while full precision is used in the math, and for a tax return, statutory depreciation schedule or audited financial statement you should confirm the method and rates with a qualified accountant.

  • Computes book/financial depreciation, not statutory tax depreciation
  • US MACRS uses recovery periods and conventions and ignores salvage
  • India uses Companies Act lives and Income Tax Act block WDV rates
  • Other countries have their own pools and first-year allowances
  • Confirm tax depreciation method and rates with a qualified accountant
Privacy & Security

Privacy and Offline Use

Because all computation runs in the browser, the asset figures you enter are never sent to a server, there is no account or tracking, and the page works offline after first load. The calculator is built on a shared, unit-tested depreciation engine so its behaviour is consistent and verifiable, the book-value chart is rendered as pure inline SVG with no third-party libraries, and the full schedule — opening value, depreciation, accumulated depreciation and book value for every year, with the headline first-year and total depreciation — can be copied to the clipboard with one tap, across four display currencies (₹, $, €, £).

Depreciation: in-browser (AnyTool) vs typical online depreciation calculators
CapabilityAnyToolTypical online depreciation calculators
ProcessingRuns in your browserOften server-side
MethodsFive (SL, DB, DDB, SYD, units)Often two or three
Year-by-year scheduleFull, with opening & book valueSometimes totals only
Book-value chartLive pure-SVG with SL referenceOften missing or static image
Double-declining switch to SLYes, reaches salvage exactlyOften trails off short of salvage
Units-of-productionYes, with constant-usage defaultRarely included
Method comparisonFirst-year deduction by methodRarely included
CurrenciesFour (₹ $ € £)Often one
Works offlineYes (PWA)No
Cost / signupFree, no signupOften ad-heavy or gated

AnyTool computes depreciation locally and uploads nothing. Book depreciation only — tax rules vary by country. Comparison as of June 2026.