History
No history yet
Depreciation Calculator
Calculate asset depreciation using Straight Line, Declining Balance, or Sum of Years Digits methods.
Loading depreciation calculator...
No history yet
Calculate asset depreciation using Straight Line, Declining Balance, or Sum of Years Digits methods.
Enter asset cost and useful life.
Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. It reflects the gradual wear and tear, age, or obsolescence of an asset, allowing businesses to spread the expense of a major purchase over the years it helps generate revenue.
Annual Depreciation = (Cost - Salvage Value) / Useful LifeKnown as the Straight Line method, this formula provides a consistent expense amount each year. It is the most common method used by small businesses and for simple personal asset tracking.
The 'Matching Principle' in accounting requires businesses to record expenses in the same period as the related revenues. Since a machine helps produce income for 5 years, its cost is spread across those 5 years.
Book value is the original cost of an asset minus its accumulated depreciation. It is the current value of the asset as shown on the company's financial records.
No. Depreciation is a non-cash expense. The cash left the business when the asset was originally purchased; depreciation is simply an accounting entry to reflect the consumption of the asset's value.
No. In nearly all accounting systems, land is not depreciable because it does not wear out or get used up over time. Only the buildings or improvements on the land can be depreciated.
"Federal tax estimates are based on 2024 brackets. Consult a tax professional for official filing."