Depreciation Calculator

What is Depreciation?

Depreciation is an accounting method used to allocate the cost of tangible assets over their useful life. It represents how much of an asset's value has been used up over time.

Depreciation Methods

Straight-line Depreciation

The simplest and most common method. It spreads the cost evenly across the asset's useful life.

Declining Balance Depreciation

Applies a higher depreciation rate in the early years of an asset's life, reflecting how many assets lose value more quickly when new.

Sum of Years Depreciation

Another accelerated method that calculates depreciation based on the sum of the years' digits, resulting in higher depreciation in earlier years.