$12,000 straight-line depreciation
- Accumulated depreciation
- $4,000.00
- Annual depreciation estimate
- $2,000.00
- Salvage value
- $2,000.00
- Age used
- 2 years
Tax depreciation can use specific rules and schedules that are not modeled here.
Depreciation Calculator
Use this free depreciation calculator to estimate accumulated depreciation, annual depreciation, and book value from cost, salvage value, useful life, age, and method.
Formula steps Estimate limits shown Examples included Private history
Formula steps
- Subtract salvage value from cost to find depreciable amount.
- Divide depreciable amount by useful life for annual depreciation.
- Cap depreciation so book value does not fall below salvage value.
How to use the depreciation calculator
- Enter the requested dollar amounts, rates, terms, tax settings, or contribution details.
- Use rates as percentages, such as 6.5 for 6.5%, and check whether a field asks for a monthly or annual amount.
- Press the calculate button to see the answer, supporting metrics, and formula steps.
- Use the result as a planning estimate only, then copy it if the assumptions look right.
Common uses
Estimate book value after straight-line depreciation.
Compare straight-line and declining-balance methods.
Check accumulated depreciation for a simple asset example.
Understand depreciation math before reviewing tax or accounting rules.
Examples
Book value and accumulated depreciation
Declining-balance estimate
First-year estimate
Frequently asked questions
Plain-language answers about when to use the estimate, what your numbers mean, what is left out, and how privacy works.
When should I use the Depreciation Calculator?
Use it for early planning and side-by-side comparisons, especially for tasks like these: Estimate book value after straight-line depreciation. Compare straight-line and declining-balance methods. Treat the answer as a planning estimate, not a final quote.
What is the Depreciation Calculator doing with my numbers?
In plain language: Straight-line depreciation divides depreciable amount by useful life. Declining balance applies a percentage rate to the remaining book value while respecting salvage value. If the result seems too high or too low, first check whether each field expects a monthly amount, annual amount, dollar value, or percent.
What does this estimate leave out?
This is simplified book-value math. It does not determine tax depreciation, MACRS class life, accounting policy, partial-year conventions, recapture, or compliance. Real finance decisions can also depend on fees, timing, local rules, credit details, and provider-specific terms.
Does the site save my finance inputs?
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.