The Depreciation Calculator is a free tool that helps you calculate depreciation using the formula Straight line = (cost - salvage)/life; DDB rate = 2/life on book value. Enter your values above and press Calculate to get first-year depreciation, straight-line per year instantly, with a full step-by-step breakdown.
What is the Depreciation Calculator?
The depreciation calculator is a free online tool that helps you calculate depreciation quickly and accurately. It applies the standard formula Straight line = (cost - salvage)/life; DDB rate = 2/life on book value to the values you enter and, when you press Calculate, displays the result together with a clear, step-by-step explanation of how the answer was reached.
How to use the Depreciation Calculator
- Enter cost and salvage value.
- Enter useful life.
- Pick a method.
- See depreciation.
Formula used
The depreciation calculator is based on this formula:
Straight line = (cost - salvage)/life; DDB rate = 2/life on book valueEach term in the formula corresponds to one of the inputs explained below. The calculator performs the arithmetic for you and shows every step so you can check the working by hand if you wish.
Worked example
Suppose you enter 100000, 10000, 5y, SL. The calculator works as follows:
| Inputs | 100000, 10000, 5y, SL |
|---|---|
| Working | (100000-10000)/5 |
| Result | 18000 per year |
Step-by-step calculation
- Apply the formula:
Straight line = (cost - salvage)/life; DDB rate = 2/life on book value - Substitute your values: (100000-10000)/5
- Read the result: 18000 per year
Inputs explained
- Asset cost — the asset cost used in the calculation.
- Salvage value — the salvage value used in the calculation.
- Useful life (years) — the useful life used in the calculation.
- Method — the method used in the calculation.
Understanding your result
- First-year depreciation — the calculated first-year depreciation.
- Straight-line per year — the calculated straight-line per year.
Benefits and practical uses
The depreciation calculator saves time and removes the risk of manual errors when you need to calculate depreciation. It is useful for students, professionals and anyone who wants a fast, dependable answer. Results update the moment you press Calculate, work on any device, and can be copied or shared in a single click — and because the maths runs in your browser, your figures stay completely private.
Tips for an accurate result
- Keep all related inputs in the same units.
- Use the worked example above to confirm you are entering values in the right places.
- Review the assumptions below so the result fits your situation.
- Press Reset to clear everything and try a different scenario.
Common mistakes to avoid
- Entering values in the wrong unit (mismatched units give wrong answers).
- Leaving a required field empty — the calculator will ask you to fill it in.
- Confusing the annual rate with a monthly rate, or tenure in years with months.
- Treating the estimate as a guaranteed return — markets and rates vary.
Assumptions and limitations
- Annual depreciation; ignores tax rules.
Frequently asked questions
Which method should I use?
Straight line is simplest; declining-balance front-loads depreciation.
How do I use the Depreciation Calculator?
Enter your values in the fields, then press the Calculate button to see the result. Use Reset to clear the form and start again. Nothing is calculated until you click Calculate.
What formula does the Depreciation Calculator use?
It uses the standard formula: Straight line = (cost - salvage)/life; DDB rate = 2/life on book value. The full step-by-step working is shown with every result so you can verify it.
What information do I need to use the depreciation calculator?
You need: asset cost, salvage value, useful life, method. Sensible example values are pre-filled so you can see how it works.
Is the Depreciation Calculator free to use?
Yes. Every DigiToolkit calculator is completely free, with no sign-up, no login and no usage limits.
Does the Depreciation Calculator work on mobile phones?
Yes. The calculator is mobile-first and works on phones, tablets and computers in any modern browser.
Do I need to install an app?
No. The depreciation calculator runs directly in your web browser — there is nothing to download or install.
Is my data private when I use this calculator?
Yes. All calculations run inside your browser. The numbers you enter are never uploaded to a server or shared with anyone.
How accurate is the Depreciation Calculator?
It uses the generally accepted formula for depreciation and computes to several decimal places. Results are accurate for the assumptions listed on this page.
Can I copy or share my result?
Yes. After calculating, use the Copy button to copy the result, or Share to copy the page link.
Why is nothing showing until I press Calculate?
By design, the calculator only computes when you press Calculate, so you can finish entering all your values first. Press Reset any time to clear everything.
What units does the Depreciation Calculator use?
It works with years. Keep your inputs in consistent units for an accurate result.