Accumulated Depreciation Calculator
Calculate and track asset depreciation using various depreciation methods
Accumulated depreciation is the total amount of depreciation expense recorded for an asset since its acquisition. It represents the cumulative decrease in the value of an asset over time due to:
- Normal wear and tear
- Obsolescence
- Age-related decline
- Usage patterns
This calculator helps you track an asset's depreciation over time using different depreciation methods, providing insights into:
- Annual depreciation amounts
- Total accumulated depreciation
- Current book value
- Depreciation schedule
Straight-line Depreciation
The simplest method that spreads the cost evenly over the asset's useful life. Annual depreciation is calculated as:
Annual Depreciation = (Asset Cost - Salvage Value) ÷ Useful Life
Double Declining Balance
An accelerated depreciation method that results in higher depreciation in early years. The annual rate is calculated as:
Annual Rate = (2 × Straight-line Rate) × Book Value
Sum-of-Years Digits
Another accelerated method that allocates more depreciation in earlier years. The depreciation factor changes each year based on:
Depreciation = (Remaining Life ÷ Sum of Years) × (Cost - Salvage)
- Enter Asset Information:
- Input the initial cost of the asset
- Specify the estimated salvage value
- Enter the asset's useful life in years
- Select Calculation Parameters:
- Choose the year for which you want to calculate depreciation
- Select your preferred depreciation method
- Review Results:
- View the annual depreciation amount
- Check the accumulated depreciation to date
- See the current book value
- Examine the complete depreciation schedule
Asset Cost
The initial purchase price or cost of acquiring the asset, including any costs to make it ready for use.
Salvage Value
The estimated value of the asset at the end of its useful life, also known as residual value or scrap value.
Useful Life
The estimated period during which the asset is expected to be useful for business operations.
Book Value
The current value of the asset on the balance sheet, calculated as the original cost minus accumulated depreciation.
Which depreciation method should I use?
The choice depends on your business needs and the asset type. Straight-line is simplest and most common, while accelerated methods like declining balance might better reflect the asset's actual value decrease over time.
Can I change depreciation methods?
While possible, changing depreciation methods requires careful consideration and might need accounting authority approval. It's best to choose the most appropriate method from the start.
How do I estimate salvage value?
Consider factors like the asset's expected condition at the end of its useful life, potential market value, and industry standards. Some businesses use zero to simplify calculations.