📉 Accumulated Depreciation Calculator
Calculate asset depreciation and book value
Purchase price of the asset
Estimated resale value at end of useful life
Expected lifespan of the asset
Number of years the asset has been used
Choose the depreciation method
How to Use This Calculator
Enter Asset Information
Input the original purchase cost, estimated salvage value, and useful life of the asset in years.
Enter Years in Use
Specify how many years the asset has been in use. This cannot exceed the useful life.
Select Depreciation Method
Choose between straight-line (even depreciation) or double-declining balance (accelerated depreciation) method.
Calculate
Click calculate to see the accumulated depreciation, current book value, and annual depreciation amount.
Formula
Straight-Line Method:
Annual Depreciation = (Original Cost - Salvage Value) / Useful Life
Accumulated Depreciation = Annual Depreciation × Years in Use
Book Value = Original Cost - Accumulated Depreciation
Double-Declining Balance Method:
Depreciation Rate = 2 / Useful Life
Annual Depreciation = Remaining Book Value × Depreciation Rate
(Cannot go below salvage value)
Example 1: Straight-Line Method
Original Cost: $10,000, Salvage Value: $1,000, Useful Life: 5 years, Years in Use: 2
Annual Depreciation: ($10,000 - $1,000) / 5 = $1,800 per year
Accumulated Depreciation: $1,800 × 2 = $3,600
Book Value: $10,000 - $3,600 = $6,400
Example 2: Double-Declining Balance Method
Original Cost: $10,000, Salvage Value: $1,000, Useful Life: 5 years, Years in Use: 2
Year 1: $10,000 × (2/5) = $4,000 depreciation, Book Value = $6,000
Year 2: $6,000 × (2/5) = $2,400 depreciation, Book Value = $3,600
Accumulated Depreciation: $4,000 + $2,400 = $6,400
About Accumulated Depreciation Calculator
The Accumulated Depreciation Calculator helps businesses and accountants calculate the depreciation of fixed assets over time. This tool supports both straight-line and double-declining balance depreciation methods, allowing you to determine the current book value of assets, track accumulated depreciation, and plan for asset replacement.
When to Use This Calculator
- Financial Reporting: Calculate depreciation for balance sheets and income statements
- Tax Preparation: Determine depreciation deductions for tax purposes
- Asset Valuation: Calculate current book value of company assets
- Budget Planning: Plan for asset replacement and capital expenditures
- Accounting Records: Maintain accurate depreciation records for fixed assets
Why Use Our Calculator?
- ✅ Multiple Methods: Supports both straight-line and accelerated depreciation methods
- ✅ Accurate Calculations: Precise depreciation calculations following accounting standards
- ✅ Book Value Tracking: Shows current book value after accumulated depreciation
- ✅ Flexible Input: Calculate for any point in the asset's useful life
- ✅ Clear Results: Comprehensive breakdown of depreciation and book value
- ✅ Free Tool: No cost, no registration required
Common Applications
- Equipment Depreciation: Calculate depreciation for machinery, vehicles, and equipment
- Property Assets: Track depreciation of buildings and improvements
- Technology Assets: Calculate depreciation for computers, servers, and IT equipment
- Vehicle Fleet: Track depreciation across multiple vehicles
Tips for Best Results
- Accurate Cost Basis: Include all costs to acquire and prepare the asset for use
- Realistic Useful Life: Base useful life on industry standards and actual usage patterns
- Salvage Value Estimate: Research market values to estimate realistic salvage values
- Method Selection: Use straight-line for simplicity, double-declining for tax advantages
- Consistent Application: Apply the same depreciation method consistently for similar assets
Frequently Asked Questions
What's the difference between straight-line and double-declining balance?
Straight-line depreciates evenly over the asset's life. Double-declining balance depreciates more in early years (accelerated), which can provide tax benefits by reducing taxable income earlier.
Can book value go below salvage value?
No. Depreciation stops when the book value reaches the salvage value. The asset cannot be depreciated below its estimated salvage value.
What should I include in the original cost?
Include the purchase price plus all costs to get the asset ready for use: shipping, installation, setup costs, and any modifications needed. This is the asset's cost basis.
How do I determine useful life?
Useful life depends on the asset type, usage patterns, and industry standards. IRS provides guidelines, but you can also use manufacturer recommendations or historical data from similar assets.
What if I need to change depreciation methods?
You generally cannot change depreciation methods mid-life for an asset. However, you can use different methods for different assets. Consult with an accountant for specific situations.
Does this calculator account for partial years?
This calculator uses full years. For partial year depreciation, you would need to prorate the annual depreciation based on the number of months the asset was in use.