Free Financial Tools

Depreciation Calculator

Track asset valuation changes. Calculate asset depreciation using Straight Line (SLM) or Declining Balance (DBM) methods.

Parameters

Results

Avg Annual Dep0
Total Depreciation0
Remaining Book Value0

Understanding the Calculations & Formulas

Depreciation is the systematic reduction of the recorded cost of a fixed asset over its useful life. It is an accounting convention used to match the cost of a tangible asset with its revenue generation.

Depreciation Methods:

Straight Line Method (SLM)

Distributes an equal amount of depreciation over each year of the asset’s lifetime.

Annual Dep. = (Asset Cost − Salvage Value) ÷ Period

Declining Balance Method (DBM)

Applies a constant percentage rate of depreciation to the asset’s book value at the beginning of each year.

Dep. Amount = Book Value × Depreciation Rate

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