Depreciation Calculator
Efficiently track the value of your business assets over time. This tool supports standard time-based methods as well as activity-based (Units of Production) depreciation.
What are the main methods of depreciation?
The four most common methods are: 1) Straight-Line (equal expense each year), 2) Declining Balance (accelerated), 3) Double Declining Balance (most accelerated), and 4) Units of Production (based on actual usage).
When should I use the Units of Production method?
This method is best for assets whose value is tied more to usage than to time, such as a delivery truck (miles driven) or a printing press (units printed).
What is "Fixed Declining Balance"?
The Fixed Declining Balance method (often called DB in Excel) calculates depreciation at a fixed rate using a formula that ensures the asset is depreciated exactly to its salvage value over its useful life.
Which method provides the highest tax deduction early on?
Accelerated methods like Double Declining Balance (DDB) or Sum-of-the-Years' Digits (SYD) result in higher depreciation expenses in the early years of an asset's life, which can reduce taxable income more quickly.