Depreciation Calculator
Enter the acquisition cost and useful life to calculate yearly depreciation, accumulated depreciation, and ending book value for both the straight-line and declining balance methods, shown as a full schedule.
If the asset was first used mid-year, the first year is prorated (usually 12 months).
Auto uses the 200% declining balance rate (1 / useful life × 2.0). You can also set it manually.
| Year | Beginning Book Value | Depreciation | Accumulated | Ending Book Value |
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* This tool provides approximate calculations only and is not tax advice. The declining balance method here is a simplified reproduction of the "200% declining balance with switch to even depreciation" approach. Actual guaranteed depreciation amounts, revised rates, special rules for low-value assets, and rounding may differ under tax law and the latest official useful-life tables. Always check the latest useful-life table and consult a tax professional or the tax office before filing or bookkeeping.
How It Is Calculated
Straight-line: Annual depreciation = Acquisition cost × straight-line rate (≈ 1 / useful life)
The same amount is depreciated every year. A memo value of 1 JPY is kept in the final year.
Declining balance: Annual depreciation = Beginning book value × declining balance rate
Depreciation is larger in early years and shrinks over time. Once the amount falls below a threshold, it switches to evenly depreciating the remaining book value over the remaining years (simplified here).
Proration: First-year depreciation = Annual depreciation × months in service ÷ 12
Assets first used mid-year are depreciated only for the months they were in service in the first year.
How to Use
Choose a Method
Select the straight-line or declining balance tab. You can switch instantly to compare both results.
Enter Cost and Useful Life
Enter the acquisition cost and useful life. If the asset was first used mid-year, set the first-year months in service.
Review Results and Schedule
See the first-year depreciation and the number of years to fully depreciate, plus a full schedule of yearly depreciation and ending book value.
Copy the Result
Use the "Copy Result" button to copy the conditions and schedule as text for your notes or filing reference.
About the Depreciation Calculator
A web tool that calculates depreciation - the allocation of a fixed asset's cost (buildings, vehicles, computers, machinery, etc.) over its useful life. Just enter the acquisition cost and useful life to automatically compute yearly depreciation, accumulated depreciation, and ending book value for both the straight-line and declining balance methods, shown as a full schedule. It also supports first-year proration by months in service. All calculations run in your browser and your data is never sent to any server.
Features
- Straight-Line & Declining BalanceSwitch between both methods in one tap to compare which is more favorable for the same asset.
- Full Depreciation ScheduleShows yearly depreciation, accumulated depreciation, and ending book value from year one to full depreciation.
- First-Year ProrationProrate the first year by months in service for assets first used mid-year.
- Privacy ProtectedAll calculations happen in your browser. Your data is never sent to any server.
Use Cases
- Estimating depreciation for sole proprietors and freelancers
- Simulating depreciation of company cars, PCs, and equipment
- Comparing straight-line vs declining balance to see which is better
- Approximating annual depreciation of real estate (buildings)
- Checking calculations while studying bookkeeping and accounting
FAQ
What is the difference between straight-line and declining balance?
How is the declining balance rate determined?
Why does the final book value remain at 1 JPY?
What are first-year months in service?
Can I use these results directly for my tax return?
Feedback
Missing a feature, or getting a result that looks wrong? Let us know — we improve our tools based on your feedback.