Depreciation Calculator

Depreciation Calculator works out how a business asset loses value over its useful life, showing the depreciation per period and the declining book value, essential for accounting and asset planning.

Depreciation exists to spread an asset's cost across the years it's used rather than expensing it all upfront, which gives a truer picture of profitability and, because depreciation is usually tax-deductible, affects tax too. The simplest and most common approach is straight-line: (cost − salvage value) ÷ useful life, spreading the loss evenly each year.

Salvage value is key, it's the asset's estimated worth at end-of-life, subtracted from the cost because you only depreciate the value actually lost, not necessarily down to zero. Accelerated methods like declining balance front-load the depreciation instead, suiting assets that lose value fastest early on and sometimes offering earlier tax benefits.

Because methods and rules vary by jurisdiction and have compliance implications, treat this as informational and confirm specifics with an accountant. Everything runs in your browser, keeping figures private. Pair it with the Car Depreciation and other ToolsMonk finance/business calculators.