depreciation calculator
Farsight Calculator contain a easy-to-use free depreciation calculator.The Depreciation calculator calculates a schedule using straight-line, sum-of-the-years' digits, or declining balance depreciation methods.
Type of depreciation to calculate:
Straight-line distributes an equal portion of the asset cost basis less the salvage value across each period of use.
Sum-of-the-years' digits uses a fraction to calculate the deprecation rate where the numerator is the remaining years of useful life and the denominator is the sum of the years of useful life.
Declining balance applies the factor to the remaining book value of the asset
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How to use
Cost Basis
Initial cost of the asset.
Salvage Value
Value of the asset after its useful life.
Expected Life
Number of years of an asset's useful life.
Factor(%)
Rate to use for the declining balance.
Calculate Button
Calculates the depreciation based on the selected method.
Depreciation Grid
Displays the depreciation amount and total for each year of the asset's useful life.
To calculate straight-line depreciation:
1. Set the depreciation method to Straight-line.
2. Enter the asset's cost basis.
3. Enter the asset's salvage value.
4. Enter the asset's expected life in years.
5. Press the Calculate button.
For example, if you purchase a $20,000 asset with a useful life of 4 years and it's salvage value is $2,000, enter the following values:
Method = Straight-line
Cost Basis = 20,000
Salvage Value = 2,000
Expected Life = 4
When you press the Calculate button, the depreciation amount for each year is $4,500.
To calculate sum-of-the-years' digits depreciation:
1. Set the depreciation method to Sum-of-the-years' digits.
2. Enter the asset's cost basis.
3. Enter the asset's salvage value.
4. Enter the asset's expected life in years.
5. Press the Calculate button.
For example, if you purchase a $20,000 asset with a useful life of 4 years and it's salvage value is $2,000, enter the following values:
Method = Sum-of-the-years' digits
Cost Basis = 20,000
Salvage Value = 2,000
Expected Life = 4
When you press the Calculate button, the depreciation amount for year 1 is $7,200 and it gradually decreases to $1,800 in year 4.
To calculate declining balance depreciation:
1. Set the depreciation method to Declining balance.
2. Enter the asset's cost basis.
3. Enter the asset's salvage value.
4. Enter the asset's expected life in years.
5. Enter the factor percentage.
6. Press the Calculate button.
For example, if you purchase a $20,000 asset with a useful life of 4 years, it's salvage value is $2,000, and the factor is 200%, enter the following values:
Method = Declining balance
Cost Basis = 20,000
Salvage Value = 2,000
Expected Life = 4
Factor = 200
When you press the Calculate button, the depreciation amount for year 1 is $10,000 and it gradually decreases to $500 in year 4.