Free Depreciation Calculator — 3 Methods
Calculate asset depreciation using straight-line, double declining balance (DDB), or sum-of-years-digits (SYD) methods. Get a full annual depreciation schedule instantly.
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Frequently Asked Questions
What is straight-line depreciation?
Straight-line depreciation deducts the same amount each year: (Asset Cost − Salvage Value) / Useful Life. A $10,000 machine with $1,000 salvage value over 5 years depreciates $1,800/year.
What is the double declining balance method?
Double declining balance depreciates at 2× the straight-line rate applied to the remaining book value each year. It front-loads deductions — useful for assets that lose value faster early in their life.
How does depreciation reduce taxes?
Depreciation is a non-cash expense that reduces taxable income. On a $50,000 asset depreciated over 5 years at a 25% tax rate, $10,000/year depreciation saves $2,500/year in taxes.