How it works
Calculate the depreciation of an asset over its useful life using Straight-Line or Double-Declining Balance methods.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
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?assetCost=Asset CostNumber · Optional · Default: 25,000
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?salvageValue=Salvage ValueNumber · Optional · Default: 5,000
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?usefulLife=Useful Life (Years)Number · Optional · Default: 5
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?method=MethodChoice · Optional · Default: straight
Outputs
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resultResultText · Primary output
result contains the calculator’s complete rendered result area, including its visible result cards, tables, charts, and messages.
Track asset value decline over time
Description
The Depreciation Calculator helps businesses and individuals track how the value of an asset (like machinery, vehicles, or equipment) declines over its useful life. It supports the two most common accounting methods: the simple Straight-Line method and the accelerated Double-Declining Balance method.
Inputs
- Asset Cost: The total original purchase price of the asset ($).
- Salvage Value: The estimated value of the asset at the end of its useful life ($).
- Useful Life (Years): The number of years the asset is expected to be in service.
- Method Selection:
- Straight Line: Distributes the loss of value equally over every year.
- Double Declining: Accelerates the depreciation, resulting in larger deductions in the early years.
Outputs
- Annual Depreciation: The amount the asset’s value decreases in a single year (or the first year for accelerated methods).
- Total Depreciation: The total value lost over the entire useful life (Cost minus Salvage).
- Book Value Over Time: The remaining value of the asset at the end of each year.
Chart
- Book Value Area Chart: Visualizes the downward trajectory of the asset’s value until it reaches the salvage floor.
“Good to Know”
- Straight-Line is the simplest and most common method for financial reporting.
- Double-Declining Balance is often used for tax purposes to maximize deductions early while the asset is most productive.
- Depreciation is a “non-cash” expense, meaning it reduces reported profit but doesn’t require an actual cash payment each year.
Examples
Example 1: Straight-Line (Office Equipment)
- Input:
- Cost: $10,000, Salvage: $1,000, Life: 5 Years
- Output:
- Annual Depreciation: $1,800
- Book Value Year 3: $4,600
Example 2: Double-Declining (Delivery Truck)
- Input:
- Cost: $25,000, Salvage: $5,000, Life: 5 Years
- Output:
- Year 1 Dep: $10,000
- Year 2 Dep: $6,000
- (Shows rapid value loss early on).
Example 3: No Salvage Value
- Input:
- Salvage: $0
- Output:
- The entire cost of the asset is depreciated until the book value is zero.