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Depreciation (Declining Balance) Calculator

Work out depreciation (declining balance) instantly with clear inputs, formula shown and shareable results.

About Depreciation (Declining Balance) Calculator

Reducing-balance depreciation applies a constant rate to the falling carrying amount, so the charge is large in early years and tapers away. It suits assets that lose value fastest when new — vehicles, IT hardware, plant — and never quite reaches zero, so the residual value acts as a floor and the remaining depreciable amount shows how much is still to be written off.

Formulas

Annual charge

Charge = Opening book value x Rate

Closing book value

Closing NBV = Opening NBV - Charge, floored at residual value

Remaining depreciable amount

Remaining = Net book value - Residual value

Worked example

With the default values below, Depreciation (Declining Balance) Calculator returns Net book value of $37,968.75. Change any input above and every figure here is recalculated in your browser.

Inputs used

Asset cost
90,000
Declining balance rate
25
Years elapsedmaximum 200
3
Residual value floor
8,000

Results

Net book value
$37,968.75
Charge in the latest year
$12,656.25
Accumulated depreciation
$52,031.25
Depreciable amount still remaining
$29,968.75

Step by step

  1. 1Values used
  2. 2Annual charge
  3. 3Closing book value
  4. 4Remaining depreciable amount
  5. 5Net book value= 37,968.75
  6. 6Charge in the latest year= 12,656.25
  7. 7Accumulated depreciation= 52,031.25
  8. 8Depreciable amount still remaining= 29,968.75

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How do I pick the rate?

A common approximation is 1 to 2 times the straight-line rate. Tax rules in many jurisdictions prescribe the rate by asset class.

Why does the charge never reach zero?

Because each year removes only a fraction of what remains. In practice a residual floor or a switch to straight-line finishes the asset off.

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Depreciation (Declining Balance) Calculator | Calcrivo