What this calculator shows you
- Multiple Methods
- Straight-line, declining balance
- Schedule
- Year-by-year breakdown
- Book Value
- Track remaining value
- Tax Planning
- Understand tax implications
Straight-Line Depreciation
The simplest method: (Cost - Salvage Value) / Useful Life = Annual Depreciation. Equal depreciation each year. Easy to calculate and commonly used for accounting.
Accelerated Depreciation
Declining balance and MACRS take more depreciation early, less later. This provides larger tax deductions in early years. Common for business tax purposes.
Questions people ask
Why does depreciation matter?
For businesses, depreciation reduces taxable income. For personal assets like cars, understanding depreciation helps with buying/selling decisions and insurance valuations.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.