Depreciation Calculator
Build a depreciation schedule with straight-line, declining balance, sum-of-years’ digits or MACRS.
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First-Year Depreciation
- Depreciable amount
- Recovery years
- Total depreciation
- Second year
- Book value halfway
- Method
Depreciation Schedule
Updates as you change the inputs.
| Year | Depreciation | Rate | Accumulated | Book Value | Remove |
|---|
How Depreciation Methods Work
Straight-line: (cost − salvage) ÷ life, the same every year
Declining balance: book value × factor ÷ life, switching to straight-line when that's larger, never below salvage
Sum-of-years' digits: (cost − salvage) × remaining life ÷ (1 + 2 + … + life)
MACRS (U.S. tax): cost × the IRS percentage for each year
MACRS here is the General Depreciation System with the half-year convention (IRS Publication 946, Table A-1): 200% declining balance for 3-, 5-, 7- and 10-year property and 150% for 15- and 20-year property, ignoring salvage. The half-year convention is why a 5-year asset is depreciated over six tax years.
Worked Example
MACRS Half-Year Percentages
| Year | 3-yr | 5-yr | 7-yr | 10-yr | 15-yr | 20-yr |
|---|
IRS Publication 946, Table A-1. Mid-quarter convention, Section 179 and bonus depreciation are not included; ask a tax professional which applies.