| Year | Opening value | Depreciation | Accumulated | Closing book value |
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General information tools only — not tax or financial advice. Rates and rules vary by country and change over time; confirm important figures with a qualified accountant.
How to use the depreciation calculator
The two standard methods
Straight-line spreads the cost evenly: the same charge every year. It is the most common method for vehicles, furniture, and equipment. Declining balance charges more in the early years and less later, which suits assets that lose value fastest when new, like computers and machinery.
Choosing life and salvage value
Useful life and residual value are estimates set by your accounting policy (and sometimes by tax rules). Enter the figures your own policy uses — the schedule follows from them exactly.
Example
Cost 10,000, salvage 1,000, life 9 years: straight-line depreciation is (10,000 − 1,000) ÷ 9 = 1,000 per year, ending at a book value of exactly 1,000. Switch to declining balance to see the same asset charged 2,222 in year 1 and smaller amounts after.
Frequently asked questions
What is salvage value?
The amount you expect the asset to be worth at the end of its useful life — for example, its trade-in or scrap value. Depreciation is only charged on cost minus salvage.
Which method should I use?
Straight-line is simpler and most common. Declining balance front-loads the expense, which can better match assets that wear out or become obsolete quickly. Your accountant can confirm which your policy allows.
Can book value go below salvage value?
No. Both methods stop exactly at the salvage value you enter.
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