Depreciation Calculator

About this tool

A company buys a 100k machine and has to choose a depreciation method. Straight line gives the same charge every year, double declining balance front-loads it, and sum of the years digits sits in between. The choice changes the first few years of the income statement, so the schedule should be on the table before the decision.

Cost 100k, salvage 5k, five years, double declining: the first year charges 40k (about 42.11% of the depreciable base), the method switches to straight line from year 4, accumulated depreciation reaches 95k and closing book value lands exactly on 5k. Straight line would be a flat 19k every year.

What it does

• MethodsThree methods in one place Every number shown here maps to a field on the form, so changing one value recomputes the rest. The units are printed next to each input, which saves most of the usual mistakes.
• ScheduleAnnual charge and accumulated total The main figures sit at the top of the result panel and the breakdown sits below it, so you can read the conclusion first and audit the steps afterwards. Nothing you type leaves the browser.
• Book valueBook value tracked year by year All arithmetic runs locally in the page. There is no request to a server, no account, and no saved history once the tab is closed. Use the example button if you want a set of values that is known to work.
• FloorSalvage floor is respected Intermediate quantities are kept in the detail table. When a total looks wrong, tracing back through those rows is much quicker than staring at the headline number alone.
• SwitchAutomatic switch to straight line The formula is written out in the notes rather than hidden behind a label, so you can check it against a spreadsheet or a textbook. Values are rounded only for display.
• SalvageBlank salvage treated as zero Inputs are validated before any calculation starts. Empty or impossible values produce a short explanation instead of a zero, a NaN, or a made-up answer.

How to use it

1. Start by filling inenter the asset cost The main figures sit at the top of the result panel and the breakdown sits below it, so you can read the conclusion first and audit the steps afterwards. Nothing you type leaves the browser.
2. Next, setenter the expected salvage value All arithmetic runs locally in the page. There is no request to a server, no account, and no saved history once the tab is closed. Use the example button if you want a set of values that is known to work.
3. Then pressset the useful life in years Intermediate quantities are kept in the detail table. When a total looks wrong, tracing back through those rows is much quicker than staring at the headline number alone.
4. Read thepick a depreciation method The formula is written out in the notes rather than hidden behind a label, so you can check it against a spreadsheet or a textbook. Values are rounded only for display.
5. Finally, usepress Calculate and check the schedule Inputs are validated before any calculation starts. Empty or impossible values produce a short explanation instead of a zero, a NaN, or a made-up answer.

Things to keep in mind

• Orderingsalvage cannot exceed cost All arithmetic runs locally in the page. There is no request to a server, no account, and no saved history once the tab is closed. Use the example button if you want a set of values that is known to work.
• Whole yearslife must be a whole number from 1 to 50 Intermediate quantities are kept in the detail table. When a total looks wrong, tracing back through those rows is much quicker than staring at the headline number alone.
• Impairmentimpairment is outside this model The formula is written out in the notes rather than hidden behind a label, so you can check it against a spreadsheet or a textbook. Values are rounded only for display.
• Tax basisthis is not a tax-basis schedule Inputs are validated before any calculation starts. Empty or impossible values produce a short explanation instead of a zero, a NaN, or a made-up answer.
• Monthlymonthly figures need converting Every number shown here maps to a field on the form, so changing one value recomputes the rest. The units are printed next to each input, which saves most of the usual mistakes.