Free Asset Depreciation Calculator

What depreciation actually is

When your organisation buys something durable — a laptop, a vehicle, a machine — it doesn't lose all its value the day you buy it. It wears out gradually. Depreciation is the accounting method that reflects that: each year, a portion of the asset's cost is recorded as an expense, and the asset's book value (what it's worth on your books) drops accordingly, until it reaches its salvage value — the estimated worth at the end of its useful life. For the accounting definitions behind this, the reference on depreciation is a solid primer.

The four inputs you need

• Cost — what you paid for the asset, including delivery and setup.
• Salvage value — the estimated resale or scrap value at the end of its life (can be zero).
• Useful life — how many years you'll use it before disposal.
• Method — how the expense is spread across those years (below).

The methods, in plain English

Straight-Line is the simplest and most common: the same amount every year, calculated as (cost − salvage) ÷ useful life. Use it when an asset delivers even value over its life — furniture, buildings, most office equipment.

Reducing / Declining Balance takes a fixed percentage of the remaining book value each year, so depreciation is high early and tapers off. Good for assets that lose value fast at first — vehicles and IT hardware.

Double-Declining Balance is an accelerated version that applies twice the straight-line rate to the book value each year — the most front-loaded method, useful for tech that becomes obsolete quickly.

Sum-of-the-Years'-Digits is a moderately accelerated method that weights early years more than later ones using a simple fraction. It sits between straight-line and double-declining.

Reading your schedule

The table shows, for each year: the depreciation charged, the accumulated depreciation so far, and the book value remaining. The chart plots that book value falling toward salvage. Straight-line, double-declining and sum-of-the-years'-digits all depreciate the same total (cost − salvage) — they just distribute it differently across the years. A fixed-rate reducing balance is the exception: it removes your chosen percentage each year and may leave a small residual above salvage, which is normal for that method.

Why this matters for your asset register

Depreciation isn't just an accounting exercise — it's the number auditors check, the basis for insurance and replacement planning, and the reason a fixed asset register matters. When every asset's cost, life and method live in one system, depreciation is calculated automatically and your book values are always current. Learn more in our explainer on how asset depreciation works.

Frequently asked questions

Which depreciation method should I use? Straight-line is the default and works for most assets. Use reducing balance or double-declining for assets that lose value quickly (vehicles, IT). Your accountant or local tax rules may specify one.

Is this calculator free? Yes — calculate as many assets as you like and export the schedule to CSV, no signup.

Can salvage value be zero? Yes. If you don't expect any resale or scrap value, set salvage to 0 and the asset depreciates to zero.

Does the method change the total expense? For straight-line, double-declining and sum-of-the-years'-digits, no — they expense the same total (cost − salvage), just on a different schedule. A fixed-rate reducing balance is the exception and may leave a small residual.