Automotive calculators

Depreciation Calculator

Updated Jun 22, 2026 By Jehan Wadia
Formulas
Depreciation Method
Spreads the depreciable cost evenly across every year of useful life. Most common for financial reporting.
Applies a fixed rate to the remaining book value each year — accelerated. A factor of 2.0 is "Double Declining Balance".
Accelerated method weighted by remaining years. Higher expense early on, declining each year.
Depreciation is based on actual output (miles, hours, units) instead of time. Best for machinery and vehicles.
Asset Inputs
$
$
Estimated value at end of useful life.
Round to Whole Numbers
Partial-Year Depreciation
Results Summary
Step-by-Step Solution
Depreciation Chart
Depreciation expense per year for the selected method.
Year-by-Year Schedule
Year / Period Beginning Book Value Depreciation Expense Accumulated Depreciation Ending Book Value

Introduction

Depreciation is the loss of value that happens to things you own over time. A new car, a laptop, or a washing machine is worth less each year as it gets older and wears out. Knowing how much value an item has lost helps you make smart choices about taxes, insurance claims, and business finances.

This free depreciation calculator handles two common needs. In Accounting Depreciation mode, you can figure out how a business asset loses value on paper each year. It supports four standard methods: Straight-Line, Declining Balance, Sum-of-the-Years'-Digits, and Units of Production. You can also set partial-year rules and compare methods side by side on a chart. In Personal Property / Insurance mode, you can find the actual cash value (ACV) of household items. Just pick an item from the built-in list, enter what it cost and how old it is, and the calculator shows you what it is worth today after depreciation.

Both modes give you a step-by-step breakdown of the math, easy-to-read charts, and a full schedule you can print. Enter your numbers below to get started.

How to Use Our Depreciation Calculator

Enter details about your asset or personal property below. The calculator will show you how much value is lost each year, a full depreciation schedule, step-by-step math, and a visual chart.

General Settings

Display Currency: Pick the currency you want to see in your results. You can choose from USD, EUR, GBP, CAD, or AUD. If you need to convert between currencies, try our Currency Calculator.

Calculator Mode: Choose "Accounting Depreciation" if you need to depreciate a business asset for bookkeeping. Choose "Personal Property / Insurance" if you want to find the actual cash value of a household item for an insurance claim.

Accounting Depreciation Mode

Depreciation Method: Select how you want to spread the cost over time. Straight-Line splits it evenly each year. Declining Balance front-loads more expense early on. Sum-of-the-Years'-Digits also gives higher expense in early years. Units of Production bases the expense on actual usage like miles or hours.

Asset Cost: Type the total purchase price or original cost of your asset. If you financed the purchase, our Loan Calculator can help you figure out the total amount paid including interest.

Salvage Value: Enter what you think the asset will be worth at the end of its useful life. Use 0 if it will have no value left.

Useful Life (Years): Enter how many years you plan to use the asset before it reaches its salvage value. This field does not appear for the Units of Production method.

Depreciation Factor: This field only shows when you pick Declining Balance. Enter the multiplier, such as 2 for Double Declining Balance or 1.5 for 150% Declining Balance.

Rate of Depreciation (%): This field only shows for Declining Balance. It auto-fills based on your factor and useful life, but you can type a custom rate to override it. If you need help working with percentages, our Percentage Calculator can assist.

Production Unit Label: This field only shows for Units of Production. Type the kind of unit you measure, such as miles, hours, or cycles.

Total Estimated Lifetime Production: Enter the total number of units you expect the asset to produce over its entire life.

Actual Production This Period: Enter how many units the asset produced during the current period you want to calculate.

Round to Whole Numbers: Choose "Yes" if you want all dollar amounts rounded to the nearest whole number. Choose "No" to keep two decimal places.

Partial-Year Depreciation: Choose "Yes" if the asset was not in service for the full first year. This opens extra fields for the start date, fiscal year, and proration method.

Asset Service Start Date: Pick the date the asset was first put into use. Our Date Duration Calculator can help you determine exactly how long ago you placed an asset in service.

Fiscal Year Start: Set the month and day your fiscal year begins. Most companies use January 1.

Depreciation Convention: Choose how the first partial year is calculated. Options range from exact day count to half-year, half-month, full-month, half-quarter, and full-quarter conventions.

Click Calculate to see your results summary, step-by-step solution, depreciation chart, and full year-by-year schedule. Use the Compare Methods button on the chart to view Straight-Line, Declining Balance, and Sum-of-the-Years'-Digits side by side. Click Print Schedule to print your depreciation table.

Personal Property / Insurance Mode

Category Filter: Narrow down the item list by picking a category such as Major Appliances, Furniture, or Consumer Electronics.

Search Items: Type part of an item name to quickly find it in the list below.

Selected Item: Click an item from the browse list to select it. The calculator uses built-in depreciation rates and caps specific to each item type.

Original Cost (RCV): Enter the replacement cost value, which is what it would cost to buy this item brand new today. Factor in inflation if you purchased the item several years ago and need an updated replacement figure.

Item Age (Years): Enter how old the item is in whole years.

Click Calculate to see the actual cash value, total depreciation amount, a step-by-step breakdown, and a donut chart showing how much value remains versus how much was lost to depreciation.

What Is Depreciation?

Depreciation is the drop in value of something you own over time. When you buy a car, a laptop, or a washing machine, it loses value every year you use it. That loss in value is called depreciation. This calculator helps you figure out how much value an item loses each year and what it is still worth today. If you are specifically looking to track how a vehicle loses value over the years, our dedicated Car Depreciation Calculator is built for that purpose.

Two Ways to Calculate Depreciation

Accounting Depreciation

Businesses use accounting depreciation to track how their assets lose value on paper. This matters for taxes and financial records. There are four common methods to calculate it:

  • Straight-Line — The asset loses the same dollar amount every year. This is the simplest and most common method. It works similarly to how an Amortization Calculator spreads loan payments evenly over time.
  • Declining Balance — The asset loses more value in its early years and less as it gets older. A factor of 2.0 is called Double Declining Balance.
  • Sum-of-the-Years' Digits — Another method where the asset loses more value early on, but it uses a weighted fraction based on remaining years.
  • Units of Production — Instead of using time, this method is based on how much the asset is actually used, like miles driven or hours run. For vehicles, our Mileage Calculator can help you track the usage that feeds into this method.

You can also adjust for partial-year depreciation if an asset was put into service partway through your fiscal year. The calculator supports six different conventions, including half-year, half-month, and exact day count. Depreciation expense directly reduces taxable income, so understanding your tax bracket helps you see the real savings.

Personal Property and Insurance Depreciation

Insurance companies use depreciation to figure out what your belongings are actually worth right now. They start with the Replacement Cost Value (RCV), which is what it would cost to buy the item brand new. Then they subtract depreciation based on the item's age and type. The result is the Actual Cash Value (ACV) — the real-world value of your item today. If you are filing a claim on your home, our Homeowners Insurance Calculator can help you estimate your overall coverage needs, while our Car Insurance Calculator focuses on vehicle policies.

Different items lose value at different speeds. A smartphone loses value fast, while a solid wood table holds its value for many years. Most items also have a depreciation cap, which means they never lose 100% of their value. The Percent Change Calculator is a handy tool if you want to quickly see what percentage of an item's original value has been lost.

Key Terms to Know

  • Asset Cost — The original price you paid for the item. If you financed a vehicle, our Auto Loan Calculator can help you determine the total cost including interest.
  • Salvage Value — What the item will be worth at the end of its useful life.
  • Useful Life — How many years the item is expected to be in service.
  • Book Value — The current value of the asset on your records after subtracting depreciation. Tracking book value is important when calculating your overall net worth.
  • Accumulated Depreciation — The total amount of value the asset has lost so far.
  • RCV (Replacement Cost Value) — The cost to replace an item with a new one of the same kind.
  • ACV (Actual Cash Value) — The current value of an item after depreciation is subtracted from its replacement cost. Knowing the ACV is essential when deciding whether to lease or buy, and our Car Lease Calculator uses residual value in a similar way.

Formulas used

Straight-Line Depreciation (Annual)
D = \frac{C - S}{N}
Declining Balance Depreciation (Per Year)
D_t = BV_t \times \frac{F}{N}
Sum-of-the-Years'-Digits Depreciation
D_t = (C - S) \times \frac{N - t + 1}{\dfrac{N(N+1)}{2}}
Units of Production Depreciation
D = \frac{C - S}{U_{\text{total}}} \times U_{\text{period}}
Partial-Year First Period Adjustment
D_1 = D_{\text{annual}} \times f
Actual Cash Value (Insurance)
ACV = RCV - RCV \times \frac{\min(r \times \text{age},\; \text{cap})}{100}

Frequently asked questions

Is this depreciation calculator free to use?

Yes. This calculator is 100% free. There are no sign-ups, no hidden fees, and no limits on how many times you can use it.

What is the difference between Accounting mode and Insurance mode?

Accounting mode is for businesses that need to track how an asset loses value on their books over time. Insurance mode is for people who want to find out what a household item is worth right now after it has aged, which is called the Actual Cash Value (ACV).

Which depreciation method should I pick?

Straight-Line is the best choice if you want equal expense each year and simple math. Declining Balance is good if you want to write off more in the early years. Sum-of-the-Years'-Digits also front-loads expense but uses a different formula. Units of Production is best when usage matters more than time, like miles driven or hours run.

What should I enter for salvage value if I do not know it?

If you think the asset will have no value at the end of its useful life, enter 0. If you are unsure, a common estimate is 5% to 10% of the original cost. Check IRS guidelines or your accountant for a more exact number.

What does the depreciation factor mean in Declining Balance?

The factor is a multiplier that controls how fast the asset loses value. A factor of 2 means Double Declining Balance, which is the most common. A factor of 1.5 means 150% Declining Balance, which is a bit slower.

When should I turn on partial-year depreciation?

Turn it on when your asset was not in service for the entire first fiscal year. For example, if your fiscal year starts January 1 but you bought a machine in July, you only get about half a year of depreciation in year one.

What is a depreciation convention?

A convention is the rule for how much depreciation you take in the first partial year. For example, the half-year convention always gives you exactly half a year of expense in year one, no matter what month you started using the asset. Other options like exact day count or full-month give different amounts based on the actual start date.

Can I compare different depreciation methods at the same time?

Yes. In Accounting mode, click the Compare Methods button above the chart. It will show Straight-Line, Declining Balance, and Sum-of-the-Years'-Digits side by side on the same bar chart so you can see how they differ.

Can I print my depreciation schedule?

Yes. Click the Print Schedule button above the year-by-year table. A new window will open with a clean version of your summary and schedule that you can print or save as a PDF.

What is Replacement Cost Value (RCV) in Insurance mode?

RCV is what it would cost to buy the same item brand new today. It is not what you paid years ago. If you bought a TV for $800 three years ago but the same type of TV costs $700 new today, the RCV is $700.

What is Actual Cash Value (ACV)?

ACV is what your item is worth right now after subtracting depreciation from the replacement cost. It is the amount many insurance companies will pay you on a claim if you have an ACV policy.

What does the depreciation cap mean in Insurance mode?

The cap is the maximum percentage of value an item can lose. For example, if a sofa has a cap of 75%, it will never be depreciated below 25% of its replacement cost, no matter how old it gets.

Why do some items in Insurance mode have price tiers?

Some items lose value at different speeds depending on how much they cost. A cheap digital camera loses value faster than an expensive one. The calculator picks the right tier based on the cost you enter and shows you which tier is applied.

What currencies does the calculator support?

You can display results in USD ($), EUR (€), GBP (£), CAD (C$), or AUD (A$). The currency setting changes the symbol shown in all results, charts, and schedules.

Does rounding to whole numbers change my results?

Yes, but only slightly. When you turn on rounding, all dollar amounts are rounded to the nearest whole number. This can cause small differences in totals. For most uses the difference is tiny, but for exact bookkeeping you may want to keep two decimal places.

How is Units of Production different from the other methods?

The other three methods are based on time — they spread the cost over a set number of years. Units of Production is based on actual use. You enter how many total units (miles, hours, cycles) the asset can produce in its life and how many it produced this period. The expense depends on how much the asset was used, not how old it is.

Can I use this calculator for vehicle depreciation?

Yes. In Accounting mode you can depreciate a vehicle using any of the four methods. Units of Production works well if you want to base it on miles driven. In Insurance mode, items like car batteries and tires are included in the Automotive Equipment category.

What happens if my item is not in the Insurance mode list?

Pick the item that is closest in type and material to yours. The built-in list covers many common household items. If nothing fits, you can use Accounting mode with Straight-Line depreciation and set a useful life and salvage value that match your item.

Does the calculator save my data?

No. All calculations happen in your browser and nothing is saved or sent to a server. If you leave the page, your inputs are cleared. Use the Print Schedule button to save a copy of your results before you go.

Is this calculator accurate enough for tax filing?

This calculator uses standard depreciation formulas and gives accurate results for learning and planning. However, tax rules can be complex and vary by country. Always check with a tax professional or your local tax authority before using these numbers on an official tax return.

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