Estimate straight-line or declining-balance depreciation from cost, salvage value, useful life, asset age, and method.
$12,000 straight-line depreciation
This is simple book-value math. IRS depreciation can depend on MACRS tables, section 179, bonus depreciation, placed-in-service dates, conventions, listed property rules, and recapture.
Estimate book value after straight-line depreciation.
Compare straight-line and declining-balance depreciation.
Check accumulated depreciation for a simple asset example.
Separate learning math from IRS tax depreciation rules.
$8,000 book value and $4,000 accumulated depreciation
About $10,546.88 book value
$5,000 book value after one year
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Plain-language answers about when to use the estimate, what your numbers mean, what is left out, and how privacy works.
Use it when you want to test the exact inputs on this page: Estimate book value after straight-line depreciation. Compare straight-line and declining-balance depreciation. The result is a check against your assumptions, not proof that a lender, tax app, broker, platform, or provider will use the same number.
Original cost means the starting cost or recorded cost basis for this simple book-value estimate. Salvage value means the estimated value left at the end of useful life. The calculator does not depreciate below this amount. Useful life means how many years the asset is expected to be used in this simple model. Asset age means how many years of depreciation to count so far. Method means straight-line spreads depreciation evenly; declining balance counts more depreciation earlier.
No. This calculator teaches straight-line and declining-balance book-value math. IRS depreciation can depend on MACRS tables, class life, placed-in-service date, conventions, section 179, bonus depreciation, and recapture rules.
Accumulated depreciation is the total depreciation counted so far. Book value is original cost minus accumulated depreciation.
Salvage value is the amount the asset is expected to be worth at the end. This calculator stops depreciation at salvage value so the book value does not go below the floor you entered.
In plain language: Depreciable amount = cost - salvage value. Straight-line depreciation divides depreciable amount by useful life. Declining balance applies the selected rate to remaining book value each year while stopping at salvage value. For the $12,000 straight-line example, depreciable amount is $10,000. Over 5 years, annual depreciation is $2,000. After 2 years, accumulated depreciation is $4,000 and book value is $8,000.
Read book value first, then check accumulated depreciation and annual depreciation. If you choose declining balance, early years usually have larger depreciation than later years.
This is simplified book-value math. It does not determine IRS MACRS depreciation, section 179, bonus depreciation, class life, placed-in-service date, partial-year conventions, listed property rules, recapture, accounting policy, or tax compliance. Use this for learning and rough book-value checks. Do not use it as a MACRS, section 179, bonus depreciation, recapture, or compliance calculator.
Check that salvage value is lower than cost, useful life is realistic, and asset age is not being used as a tax placed-in-service rule. Use official IRS guidance or a tax pro before filing depreciation.
No. The calculator runs in your browser tab. Recent answers stay only on the page while you use it, and they are not sent to a server.