Declining Balance Depreciation
Calculate accelerated asset depreciation using the Declining Balance or Double Declining method.
Accelerated Schedule
| Year | Depreciation | Book Value |
|---|---|---|
| Year 1 | -$4,000 | $6,000 |
| Year 2 | -$2,400 | $3,600 |
| Year 3 | -$1,440 | $2,160 |
| Year 4 | -$864 | $1,296 |
| Year 5 | -$296 | $1,000 |
Σ The Formula
Real World Examples
# About This Calculator
The Declining Balance Method is an accelerated depreciation system that records larger depreciation expenses in the earlier years of an asset's life and smaller ones in later years.
This method is commonly used for assets that lose value rapidly, such as technology, vehicles, and specialized machinery. The Double Declining Balance (DDB) method is a specific version that uses a factor of 2.0, meaning it depreciates at twice the rate of the straight-line method.
How To Use
- Enter the **Initial Cost** and **Salvage Value**.
- Enter the **Useful Life** in years.
- Adjust the **Factor** (1.5 for 150%, 2.0 for 200%/Double Declining).
- Review the table to see how the depreciation expense decreases each year.
Frequently Asked Questions
When should I use Double Declining Balance?+
Does it stop at Salvage Value?+
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About
The Declining Balance Method is an accelerated depreciation system that records larger depreciation expenses in the earlier years of an asset's life and smaller ones in later years.
This method is commonly used for assets that lose value rapidly, such as technology, vehicles, and specialized machinery. The Double Declining Balance (DDB) method is a specific version that uses a factor of 2.0, meaning it depreciates at twice the rate of the straight-line method.