Accumulated depreciation calculator

Calculate accumulated depreciation, current book value, and depreciation expense with four common methods, live charts, a year-by-year schedule, and a clear accounting explanation.

⚑ Report error
Accumulated depreciation
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Straight-line method
Current book value
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Cost minus accumulated depreciation
Depreciable base
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Cost minus salvage value

Accumulated depreciation over time

How the selected method reduces the remaining book value
Live
Accumulated depreciation Updates with every input

Book value by year

Cost less accumulated depreciation, with salvage floor
Live
Net book value Salvage floor shown
LIVE SCENARIO INTELLIGENCE

What the depreciation schedule is really telling you

Updates live
Annual depreciation—current or first-year charge
Life used—elapsed ÷ useful life
Base written off—accumulated ÷ depreciable base
Remaining base—depreciation still to come
Change the assumptions to see how method and timing reshape book value.
DECISION TOOLS

See the impact before you change the asset assumptions

Small changes in useful life, salvage value, or depreciation method can materially change the timing of expense.

Live
Asset utilizationLIVE
— Elapsed useful life relative to total life
Cost allocation bridgeLIVE
— accumulated — book value — salvage floor
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Depreciation schedule

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Year Depreciation expense Accumulated depreciation Book value

Your scenario

Choose how the depreciable base is allocated over time.
$
Capitalized cost of the asset when placed in service.
$
Estimated value remaining at the end of useful life.
yr
yr
×
2× corresponds to double-declining balance.
Book depreciation is an accounting allocation of an asset's depreciable base. It is not a direct measure of market value.
THE CONCEPT

What is accumulated depreciation?

Accumulated depreciation is the total depreciation expense that has been recognized for a depreciable asset from the time it is placed in service through a selected date. It is a contra-asset balance: it reduces the asset's carrying amount on the balance sheet without changing the original historical cost account.

The key distinction for a finance student is between depreciation expense and accumulated depreciation. Depreciation expense belongs to a particular period. Accumulated depreciation is the running total of those period-by-period charges. The difference between original cost and accumulated depreciation gives the asset's carrying amount, often called its net book value.

ORIGINAL COST $25,000 capitalized asset ACCUMULATED DEPRECIATION − $4,400 BOOK VALUE $20,600 Cost − accumulated depreciation = carrying amount
The accounting relationship is simple: accumulated depreciation grows as depreciation expense is recognized, while book value falls toward the asset's estimated salvage value.
THE FOUR METHODS

How accumulated depreciation is calculated

The calculator supports four common allocation methods. The important question is not which method produces the largest number today; it is when the depreciable base is recognized as expense. Straight-line spreads the base evenly, while accelerated methods recognize more expense earlier. Units of production links depreciation to actual use.

Straight-line

Equal annual allocation

Depreciation is constant when the depreciable base and useful life are fixed.

Annual = (Cost − Salvage) ÷ Useful life

Declining balance

Front-loaded expense

A fixed rate is applied to the opening book value, so the charge normally declines over time.

Expense = Opening book value × (Factor ÷ Life)

Sum-of-years' digits

Accelerated, but smoother

The remaining-life fraction starts high and decreases each year.

SYD = n(n + 1) ÷ 2

Units of production

Use-based allocation

Expense follows actual production or usage rather than simply the passage of time.

Expense = Base ÷ Total units × Units used
One accounting principle matters throughout. Accumulated depreciation should not reduce the asset below its stated salvage value in this educational model. The method changes the timing of expense; it does not create depreciation beyond the depreciable base.
THE FORMULA

Accumulated depreciation formulas

Begin with the depreciable base. That is the portion of the asset's historical cost that can be allocated to expense under the selected assumptions.

Depreciable base = Cost − Salvage value
B = C − S
C
original asset cost
S
estimated salvage value at the end of useful life
B
depreciable base

Straight-line method

Annual depreciation = (C − S) ÷ n
n
useful life in years
t
years elapsed

Accumulated depreciation after t years is the annual charge multiplied by elapsed years, capped at the depreciable base. This is the cleanest method for seeing the distinction between a periodic expense and the cumulative balance.

Declining-balance method

Expenseₜ = Opening book value × (factor ÷ n)
factor
acceleration factor; 2 means double-declining balance
opening book value
book value at the beginning of the year

Sum-of-years' digits

SYD = n(n + 1) ÷ 2
Expenseₜ = (remaining life ÷ SYD) × (C − S)
remaining life
useful-life years remaining at the start of the period
SYD
sum-of-years'-digits denominator

Units of production

Accumulated depreciation = (C − S) × Units used ÷ Total lifetime units
Units used
actual production or usage represented by the input
Total units
estimated lifetime production or usage
THE VISUAL MODEL

Why the timing changes the picture

Suppose two identical machines have the same cost, salvage value and useful life. If one uses straight-line depreciation and the other uses an accelerated method, their total depreciable base can be identical while their annual expenses and book values differ substantially in the early years.

Book value falls at different speeds straight-line declining balance SYD start end of life
The lines converge at the salvage floor at the end of the useful life, but the route taken through the accounting periods can be very different.
WORKED EXAMPLES

Worked example: a $25,000 machine

Consider a machine costing $25,000, with a $3,000 salvage value, a 15-year useful life, and three years elapsed. The depreciable base is $22,000.

1. Straight-line

Annual depreciation = $22,000 ÷ 15 = $1,466.67.

$1,466.67 × 3 = $4,400.00 accumulated

Book value = $25,000 − $4,400 = $20,600.

2. Double-declining balance

The first-year rate is 2 ÷ 15 = 13.33%. The first-year expense is approximately $3,333.33, and the second-year expense is based on the reduced opening book value.

$25,000 × 13.33% = $3,333.33 in year 1

3. Sum-of-years' digits

SYD = 15 × 16 ÷ 2 = 120. The first three year fractions are 15/120, 14/120 and 13/120.

$22,000 × (15 + 14 + 13) ÷ 120 = $7,700.00
The example demonstrates why the same asset can have different accumulated depreciation at the same date under different allocation methods. The difference is timing, not a change in the original cost.
ACCOUNTING INTERPRETATION

How to read accumulated depreciation

Accumulated depreciation appears as a contra-asset account associated with property, plant and equipment. It increases as depreciation expense is recognized. The carrying amount is the original cost less this accumulated balance. That carrying amount is an accounting measurement; it should not automatically be read as the asset's market price.

01 · ACQUIRECostRecord the asset at its capitalized cost.
02 · USEExpenseRecognize depreciation according to the chosen method.
03 · ACCUMULATEContra-assetBuild the cumulative depreciation balance.
04 · PRESENTBook valueCost less accumulated depreciation.

Vehicles

Fleet vehicles are common depreciable assets because their useful service and carrying amounts change over time.

Machinery

Production equipment can be modeled with time-based methods or units of production when usage is measurable.

Buildings

Buildings generally have long useful lives, making the relationship between cost, salvage and annual expense especially visible.

Technology

Shorter-lived equipment can show a meaningful difference between straight-line and accelerated schedules.

LIMITS & CONTEXT

What accumulated depreciation does not tell you

Accumulated depreciation is not the same thing as economic depreciation, replacement cost, fair value or resale value. It is a systematic accounting allocation under stated assumptions. Tax depreciation can also follow a different schedule from book depreciation. When a real financial statement is being analyzed, the accounting policy, useful-life estimates, conventions, impairment rules and applicable reporting framework all matter.

FAQ

Accumulated depreciation FAQ

What is the difference between depreciation expense and accumulated depreciation?

Depreciation expense is the charge recognized for a particular period. Accumulated depreciation is the running total of those charges recorded against the asset since it was placed in service.

Is accumulated depreciation an asset?

It is presented with the related asset as a contra-asset account. Its normal balance reduces the carrying amount of the depreciable asset.

Can accumulated depreciation exceed the asset's cost?

Not in the standard model used here. The accumulated amount is capped at the depreciable base, so the book value does not fall below the stated salvage value.

Does a higher accumulated depreciation mean an asset is worth less in the market?

Not necessarily. Book value is an accounting measure. Market value depends on demand, condition, replacement economics, expected cash flows and other factors outside the depreciation schedule.

Why can two methods give different accumulated depreciation?

Because the methods allocate the same depreciable base at different speeds. Accelerated methods generally recognize more expense in earlier periods.