Depreciation Calculator
Compare straight-line expense with a declining-balance schedule that respects salvage value across the asset’s useful life.
Asset inputs
Straight-line rate would be 20.0%; double-declining is often 2× that.
Straight-line (annual)
$3600.00
Total depreciable base: $18000.00
Declining balance schedule
Stops at salvage. Total DDB: $18000.00
- Year 1Dep $8000.00 · Book $12000.00
- Year 2Dep $4800.00 · Book $7200.00
- Year 3Dep $2880.00 · Book $4320.00
- Year 4Dep $1728.00 · Book $2592.00
- Year 5Dep $592.00 · Book $2000.00
Why depreciation matters
When you buy durable assets—vehicles, machinery, laptops—you usually consume their value over time. Depreciation allocates that cost across accounting periods so profit reflects wear and obsolescence, not a misleading one-time hit. Straight-line is stable; accelerated methods match assets that lose value faster early on.
Learn more in what is amortization (similar idea for intangibles) and what is capital expenditure. For loan-funded purchases, also try the loan payment calculator.
Frequently Asked Questions
Track assets and spending
Use Billed to capture expenses and keep financial records organized alongside the invoices that fund growth.
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