Declining balance depreciation calculator
An accelerated method that puts more depreciation in the early years, suited to assets that lose value fast such as vehicles and computers.
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How to use it
- Enter asset cost, salvage value, useful life and factor.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Rate = factor ÷ life. Year depreciation = the smaller of (opening book value × rate) and (book value − salvage).
Example
Inputs: Asset cost = 10,000, Salvage value = 1,000, Useful life = 5 years, Factor = Double declining (200%). Result: First-year depreciation: 4,000.00; Annual rate: 40%; Book value at end of life: 1,000.00.
Limits and caveats
- Does not switch to straight line in later years, so book value can stay above salvage (like the Excel DDB function).
- Uses full years without prorating the first year by purchase date.
Questions about this tool
How is the double declining rate found?
It is twice the straight-line rate: a 5-year asset is 20% straight line and 40% double declining.
Does salvage value count?
It is not subtracted from cost at the start, but book value never drops below it.
Why does book value sometimes not reach salvage?
The method takes a percentage of a shrinking balance, so with a small salvage value some cost is left in the last year.