Declining Balance Depreciation Calculator

Calculate declining balance depreciation. Accelerated depreciation method for higher early-year deductions.

Declining balance depreciation is an accelerated method that deducts more in early years and less in later years. It reflects how many assets lose value faster when new.

Calculator

$
$
Year 1 Depreciation
$0.00
Year 2 Depreciation
$0.00
Depreciation Rate
200.00%
Year 1 Book Value
$0.00

Common use cases

  • Assets that lose value quickly
  • Technology and electronics
  • Vehicles and equipment
  • Tax optimization

How to use

  1. Enter asset cost
  2. Input salvage value
  3. Specify useful life
  4. Choose decline factor (2x for double declining)
  5. View annual depreciation schedule

FAQ

What's double declining balance?

It uses 2x the straight-line rate, so a 5-year asset depreciates at 40% (2/5) of remaining value each year.

When does declining balance stop?

When book value equals salvage value, or you switch to straight-line when it gives higher deduction.

Is this accepted for taxes?

Yes, MACRS (Modified Accelerated Cost Recovery System) uses declining balance for most business assets.

This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.