Depreciation Calculator
Calculate asset depreciation using straight-line, declining balance, or MACRS methods, with a full year-by-year schedule.
Calculator Inputs
Sets the currency this calculator's numbers are denominated in. This is presentation only — it does NOT convert your numbers between currencies, it only changes how they're formatted.
The asset's original purchase price.
Expected residual value at the end of the asset's useful life. Ignored for MACRS.
How many years the asset is expected to be depreciated over.
Only used for the Declining Balance method: the rate as a percentage of the straight-line rate. 200% is 'double-declining balance', the most common variant.
Which year's row from the schedule to show as the headline result.
- Depreciation Expense (Inspected Year)
- $9,000.00
- Accumulated Depreciation (Through Inspected Year)
- $9,000.00
- Book Value (End of Inspected Year)
- $41,000.00
- Total Depreciable Base (Cost − Salvage)
- $45,000.00
- Status
Full Depreciation Schedule
All 5 periods of the straight-line schedule.
| Year | Beginning Book Value | Depreciation Expense | Accumulated Depreciation | Ending Book Value |
|---|---|---|---|---|
| 1 | $50,000.00 | $9,000.00 | $9,000.00 | $41,000.00 |
| 2 | $41,000.00 | $9,000.00 | $18,000.00 | $32,000.00 |
| 3 | $32,000.00 | $9,000.00 | $27,000.00 | $23,000.00 |
| 4 | $23,000.00 | $9,000.00 | $36,000.00 | $14,000.00 |
| 5 | $14,000.00 | $9,000.00 | $45,000.00 | $5,000.00 |
About these results
CalcSpectrum calculators produce automated estimates using established formulas and the specific values you enter. Because real-world outcomes depend on input accuracy, mathematical assumptions, and rounding conventions, please verify critical figures with an appropriately qualified financial, tax, medical, legal, or other professional, as relevant.
Financial Notice: These figures are informational estimates for personal planning only. They do not constitute financial, investment, tax, or legal advice, nor do they represent a lending offer or credit approval. Provider and financial institution figures, rates, fees, and underwriting requirements may differ.
How It's Calculated
Formula
This calculator computes an asset's depreciation schedule under three methods. Straight-line spreads the depreciable base (cost minus salvage value) evenly across the useful life. Declining balance applies a constant rate to the prior year's book value, front-loading depreciation, and never depreciates below the salvage value. MACRS (Modified Accelerated Cost Recovery System) uses the general 200%-declining-balance-switching-to-straight-line formula under the IRS's half-year placed-in-service convention, which produces one extra half-year period at the end of the recovery period and ignores salvage value entirely (MACRS depreciates the full cost to zero) — this matches the general GDS formula but is not a substitute for the IRS's official published percentage tables, and does not model mid-quarter convention, Section 179, or bonus depreciation.
Worked Examples
Straight-line: $50,000 asset, $5,000 salvage, 5-year life
- Depreciable base: $50,000 − $5,000 = $45,000
- Annual depreciation: $45,000 ÷ 5 = $9,000/year
- Book value after year 1: $50,000 − $9,000 = $41,000
- Book value after year 5: exactly $5,000 (the salvage floor)
MACRS: $100,000 asset, 5-year property
- 200% declining balance rate: 2 ÷ 5 = 40%
- Half-year convention year 1: $100,000 × 40% × 0.5 = $20,000 (20.00%)
- Year 2: $80,000 × 40% = $32,000 (32.00%)
- The schedule switches to straight-line once it yields a larger deduction, producing the standard published percentages: 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, 5.76% across 6 periods (5-year life + 1 half-year period)
Frequently Asked Questions
Why does MACRS produce 6 periods for a 5-year asset?
The IRS's half-year convention assumes an asset is placed in service mid-year, so only half a year of depreciation is allowed in year 1 — the other half year of depreciation is pushed into a final, extra period after the nominal useful life, producing life + 1 total periods.
Why does MACRS ignore my salvage value input?
Under IRS rules, MACRS depreciates an asset's full cost basis to zero regardless of expected salvage value — salvage value only applies to accounting methods like straight-line or declining balance, not to MACRS.
What declining balance rate should I use?
200% ('double-declining balance') is the most common choice and this calculator's default. 150% is another common variant for certain accounting policies. Enter whichever rate your accounting method specifies.
Is this calculator tax advice?
No. This is a general depreciation-schedule planning tool. The MACRS method approximates the general IRS formula but does not model every real-world MACRS rule (mid-quarter convention, Section 179 expensing, bonus depreciation, listed-property limits) — consult a tax professional or the IRS's official published tables for tax filings.