Depreciation Calculator

This depreciation calculator helps you determine how much an asset decreases in value over time using various accounting methods. Enter the original cost, expected salvage value at the end of its useful life, and the number of years the asset will be used. Choose from straight-line (equal amounts each year), declining balance (higher depreciation early), or sum-of-years digits methods to match your accounting and tax planning needs.

Understanding depreciation is essential for business accounting, tax planning, and asset management decisions. Different methods provide different tax advantages and cash flow implications - straight-line is simple and consistent, declining balance front-loads depreciation for immediate tax benefits, while sum-of-years provides a balanced approach. Use this calculator for business planning, tax preparation, equipment replacement scheduling, and financial statement preparation. The year-by-year breakdown helps you understand the impact on your financial statements and optimize your tax strategy.