Finance
Declining Balance Depreciation Calculator
Calculate first-year depreciation when a fixed percentage is applied to the shrinking balance.
This result shows how much value is written off in the first year and the value left on the books after that year.
Formula
First-year depreciation equals cost times the rate; later years apply the same rate to the remaining book value, floored at salvage value.
How it works
Declining balance front-loads depreciation, matching assets that lose most value early. The book value never drops below salvage value in this calculator.
Worked example
For example, $20000 at 20% gives first-year depreciation of $4000.00, leaving a book value of $16000.00 after year 1.
FAQs
Why is early depreciation higher?
Because the rate applies to a larger balance in the first years.
When is this method used?
For vehicles, computers, and machinery that age fastest early on.
What is book value?
Cost minus depreciation taken so far.
Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.
Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.
Related calculators
Biweekly Mortgage Savings Calculator
Instant result, no sign-up.
All tools are free.
Each page shows the formula it uses, so you can check the result yourself.
Built for phone browsers.
Start with a free calculator
Search, pick a calculator, and get an instant result. No sign-up, no download.