Declining Balance Depreciation Calculator

About this calculator

Declining balance depreciation applies a fixed rate to the asset's remaining book value each year rather than a fixed dollar amount, so the depreciation expense is largest in early years and shrinks over time: expense = book value at start of year × rate. The most common variant, double-declining balance (DDB), sets the rate to 2 / useful life (200% of the straight-line rate), though this calculator supports other multipliers too.

Accountants use this accelerated method because it matches how many assets — vehicles, machinery, computers — actually lose most of their value early in their useful life, and it's the basis for tax-depreciation systems like MACRS in the US. Financial analysts and small-business owners use it to project book value and tax deductions year by year, often switching to straight-line depreciation near the end of the schedule to fully depreciate down to salvage value.