Work out depreciation (double declining) instantly with clear inputs, formula shown and shareable results.
Double-declining balance uses twice the straight-line rate applied to the opening carrying amount. It front-loads the charge more aggressively than ordinary reducing balance, and the residual value caps the total so the remaining depreciable amount shows exactly how much is left to write off.
DDB rate
Rate = 2 / Useful life
Year charge
Charge = Opening book value x Rate, capped at (Opening NBV - Residual)
Remaining depreciable amount
Remaining = Book value - Residual value
Once the straight-line charge on the remaining life exceeds the declining-balance charge. Many tax regimes mandate that switch.
No — unlike straight-line, residual value only acts as a floor, it does not reduce the depreciable base.