Enter the asset cost, salvage value and useful life, then choose a method to see yearly depreciation, accumulated depreciation and book value.
| Year | Depreciation | Accumulated | Book value |
|---|---|---|---|
| 1 | $5,000 | $5,000 | $25,000 |
| 2 | $5,000 | $10,000 | $20,000 |
| 3 | $5,000 | $15,000 | $15,000 |
| 4 | $5,000 | $20,000 | $10,000 |
| 5 | $5,000 | $25,000 | $5,000 |
Note: these are book (accounting) depreciation methods. US tax depreciation normally uses MACRS tables and conventions set by the IRS, which give different yearly amounts – ask a tax professional for tax returns.
(Cost − salvage value) ÷ useful life. A $30,000 asset with a $5,000 salvage value and a 5-year life depreciates $5,000 per year.
Double-declining balance applies twice the straight-line rate (2 ÷ life) to the remaining book value – 40% a year for a 5-year asset – and never goes below salvage value. Sum-of-the-years' digits multiplies the depreciable amount by a falling fraction: 5/15, 4/15, 3/15 and so on.
Subtract the salvage value from the cost and divide by the useful life in years.
An accelerated method that depreciates 2 ÷ life of the remaining book value each year, so more is expensed in the early years.
No. MACRS is the US tax system with IRS tables and conventions; these calculations are for book accounting.