Complete guide
Depreciation Calculator: formula, worked example and interpretation
Create straight-line or declining-balance depreciation for a finite-life asset. Enter the known values and the result updates instantly with an auditable breakdown.
What the Depreciation Calculator answers
Create straight-line or declining-balance depreciation for a finite-life asset.
Use the breakdown to compare the result with the source values before making a decision.
Formula and variables
The calculation uses straight line=(cost−salvage)/life; declining depreciation=opening book value×rate. Every variable comes directly from a labeled field.
straight line=(cost−salvage)/life; declining depreciation=opening book value×rateWorked example
A $50,000 asset with $5,000 salvage over five years depreciates $9,000 annually under straight line.
Changing any field recalculates the result immediately, so nearby scenarios can be compared without reloading the page.
How to use the result
Treat the result as a planning value and compare it with the detailed rows shown beside it.
Keep units and time periods consistent. Use the share or PDF action to preserve the exact assumptions.
Assumptions and scope
Book depreciation is not automatically the same as tax depreciation, market value or economic obsolescence.
The calculator exposes its assumptions instead of filling missing facts with hidden estimates.
Accuracy checks
Confirm the units, dates, rates and source figures before relying on the output.
Round only the displayed answer; Calculator24 keeps full JavaScript precision for intermediate arithmetic and exported values.
Input and output checklist
| Item | What to enter or review |
|---|---|
| Inputs | Method, Asset cost ($), Salvage value ($), Useful life (years), Declining rate (%) |
| Equation | straight line=(cost−salvage)/life; declining depreciation=opening book value×rate |
| Example | A $50,000 asset with $5,000 salvage over five years depreciates $9,000 annually under straight line. |
| Limit | Book depreciation is not automatically the same as tax depreciation, market value or economic obsolescence. |
Frequently asked questions
What does this Depreciation Calculator calculate?
Create straight-line or declining-balance depreciation for a finite-life asset.
Which formula does it use?
straight line=(cost−salvage)/life; declining depreciation=opening book value×rate
Does the result update while I type?
Yes. Valid changes recalculate after a short delay and the previous result is not substituted for invalid input.
Which assumptions should I check?
Check units, rates, dates and every source value shown in the form.
Is the result exact?
Book depreciation is not automatically the same as tax depreciation, market value or economic obsolescence.
Can I save or share the calculation?
Yes. Copy, Share, WhatsApp, PDF/Print, CSV, comparison and parameterized-link actions are available.
What to keep in mind
Book depreciation is not automatically the same as tax depreciation, market value or economic obsolescence.
Results display up to 8 decimal places; exported numbers preserve calculation precision. This is a calculation summary, not an official certificate.