Depreciation Calculator
Calculate a fixed asset's annual depreciation and book value.
Results
First-year depreciation
The part of the asset's value recognised as an expense during the year. —
Depreciation rate
Depreciation is the same every year. Suitable for assets that wear out evenly — buildings, furniture. Depreciation rate
The depreciation rate is twice the straight-line rate and is applied each year to the remaining book value, so depreciation is high in the early years and then decreases. Suitable for assets that lose value quickly — machinery, vehicles, computers. —
Depreciable amount
Cost minus residual value — the amount allocated as depreciation over the useful life. —
Depreciation schedule
Cost minus accumulated depreciation — the asset's value on the balance sheet.The part of the asset's value recognised as an expense during the year.The sum of depreciation for all years up to the end of the given year.Cost minus accumulated depreciation — the asset's value on the balance sheet.
| Year | Opening book value | Annual depreciation | Accumulated depreciation | Closing book value |
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Accounting depreciation. Tax depreciation rules may differ.
Glossary of terms
- Asset cost
- The purchase price plus delivery, installation and commissioning costs (excluding VAT, if VAT is recoverable).
- Residual value
- The estimated amount for which the asset could be sold at the end of its useful life.
- Useful life
- The number of years you will use the asset in the business.
- Depreciable amount
- Cost minus residual value — the amount allocated as depreciation over the useful life.
- Straight-line method
- Depreciation is the same every year. Suitable for assets that wear out evenly — buildings, furniture.
- Double declining balance method
- The depreciation rate is twice the straight-line rate and is applied each year to the remaining book value, so depreciation is high in the early years and then decreases. Suitable for assets that lose value quickly — machinery, vehicles, computers.
- Annual depreciation
- The part of the asset's value recognised as an expense during the year.
- Accumulated depreciation
- The sum of depreciation for all years up to the end of the given year.
- Book value
- Cost minus accumulated depreciation — the asset's value on the balance sheet.
Results are indicative and do not constitute financial advice.