How to Use the Depreciation Expense Calculator
This calculator produces book depreciation — the straight-line and declining balance schedules you use in financial statements and internal budgets. It is not a tax depreciation calculator: for a US federal return, depreciable property is generally written off under MACRS, which uses IRS-published recovery periods, conventions and percentage tables that do not match either method here. Use this for your books, and your MACRS schedule (or your CPA) for the return.
Straight-line spreads (cost − salvage value) evenly across the useful life. Declining balance applies a fixed rate to the beginning book value each year, so expense is front-loaded; for double-declining balance, the rate is 2 ÷ useful life. In both methods the expense is trimmed so book value never falls below salvage value, and the year that trim kicks in is called out below the results.
Recovery periods and rates are deliberately left as inputs rather than built in, because the right figures depend on the asset class and on current IRS guidance. Check Publication 946 or your accountant for the MACRS class life and applicable convention before filing, and enter your own book policy figures here. Results are for planning and do not constitute tax advice.
Frequently Asked Questions
No. US federal returns generally require MACRS, with recovery periods, conventions and percentage tables published by the IRS. This tool produces book depreciation for financial statements and budgeting.
For double-declining balance the rate is 2 ÷ useful life, so a 5-year life is 40% and a 10-year life is 20%. Some companies use 150% declining balance instead, which is 1.5 ÷ useful life.
Each year only takes a percentage of what is left, so the balance approaches the salvage value without landing on it. The note under the results shows the ending book value when that happens.