Accumulated Depreciation Calculator | calcsdone

Finance & Accounting

Accumulated Depreciation Calculator

This accumulated depreciation calculator finds the total depreciation an asset has accrued to date, plus its current book value, using the straight-line, double declining balance, sum-of-years-digits, or units-of-production method.

Author: calcsdone Editorial Team

Last updated: July 30, 2026

Rate this tool

Enter Asset Details

Formula: (Cost − Salvage) ÷ Life

Depreciation method

Asset cost (original)

Salvage (residual) value

Useful life

years

Years elapsed (to date)

years

Load a sample asset

Accumulated Depreciation

$0.00

Current Book Value

$0.00

Current Year Depreciation

$0.00

Depreciation schedule

Year	Depreciation	Accumulated	Book Value
Enter values above to generate a schedule.

Verify with your accountant the necessary procedure and any regulatory limitations (such as MACRS for US tax purposes) for financial reporting or tax filing; this accumulated depreciation calculator is merely an estimate and does not constitute tax or accounting advice. No data is transferred or stored; all calculations take place locally within your browser.

Why use this calculator

Why Use an Accumulated Depreciation Calculator

Throughout the asset’s useful life, every depreciation method distributes the same depreciable base — asset cost less salvage value. What actually varies between techniques is when that expense lands. For budgeting purposes, the simplest option is the “straight-line” method, which spreads the cost equally and remains the most popular choice for buildings and other long-term assets. By contrast, accelerated approaches such as double declining balance and sum-of-years-digits front-load expenses into the early years, which suits assets like cars or tech equipment that lose value or usefulness fastest when new. Meanwhile, units of production links depreciation to actual utilization rather than the calendar, so it fits equipment that wears out with output instead of with time.

So, this accumulated depreciation calculator works out the current book value (cost − accumulated depreciation) and the running accumulated depreciation total since acquisition, for whichever method best suits your asset. It can also generate a full year-by-year schedule, letting you see precisely how the expense unwinds over the asset’s life.

How it works

How This Accumulated Depreciation Calculator Works

This accumulated depreciation calculator applies four depreciation methods, each allotting the same depreciable amount (cost less salvage value) over the asset’s useful life. In each case, the only real difference is how much expense falls into a given period.

Straight-Line

The most straightforward approach: (Cost − Salvage) ÷ Useful Life provides a consistent and predictable annual depreciation expenditure.

Double Declining Balance

An accelerated approach: the depreciation is calculated as 2 ÷ Useful Life times the current book value for each year. This means that greater expenses are incurred in the early years and fewer in the later ones, ensuring that the asset never falls below salvage value.

Sum-of-Years-Digits

Each year’s share of the depreciable base is (remaining years) ÷ (sum of all years' digits), which is also accelerated but smoother than DDB. For a five-year asset, this means a split of 5/15, 4/15, 3/15, 2/15, and 1/15.

Units of Production

Depreciation is tied to actual usage rather than time: (Cost − Salvage) ÷ Total Estimated Units provides a rate per unit, multiplied by units actually generated; this is perfect for gear that ages with use.

Worked examples

Accumulated Depreciation Calculator: Worked Examples

Below, one example is worked for each method, using the same formulas as the accumulated depreciation calculator above.

Straight-Line

Delivery van after 2 years

A delivery van has a five-year useful life, a $50,000 purchase price, and a $5,000 salvage value. After two years, what is the total depreciation?

Given inputs

Cost: $50,000
Salvage: $5,000
Life: 5 years
Elapsed: 2 years

Computed outputs

Annual depreciation: ($50,000 − $5,000) ÷ 5 = $9,000
Accumulated (2 yrs): $9,000 × 2 = $18,000
Book value: $50,000 − $18,000 = $32,000

Double Declining Balance

Office computers after year 1

$12,000 of computers, $1,000 salvage, 3-year life. What’s DDB depreciation for year 1?

Given inputs

Cost: $12,000
Salvage: $1,000
Life: 3 years
Elapsed: 1 year

Computed outputs

Rate: 2 ÷ 3 = 66.7% of book value per year
Year 1 depreciation: $12,000 × 66.7% = $8,000
Book value after year 1: $4,000 (never below $1,000 salvage)

Units of Production

Factory machine mid-life

A $200,000 machine with $20,000 salvage is rated for 100,000 total units and has produced 35,000 units thus far. What’s accumulated depreciation?

Given inputs

Cost: $200,000
Salvage: $20,000
Total units: 100,000
Units produced: 35,000

Computed outputs

Rate per unit: ($200,000 − $20,000) ÷ 100,000 = $1.80
Accumulated: $1.80 × 35,000 = $63,000
Book value: $200,000 − $63,000 = $137,000

Common mistakes & edge cases

Accumulated Depreciation Calculator Mistakes to Avoid

Forgetting to subtract salvage value first

With the exception of pure DDB, every method depreciates (cost − salvage), not the entire cost. Skip this step, and depreciation ends up overstated while the final book value is routinely understated.

Letting book value drop below salvage value

Under accelerated methods such as DDB, the formula can mathematically push book value under salvage in later years. To prevent that, standard practice caps the final year’s depreciation so book value never falls below the salvage estimate.

Applying a full year of depreciation to a partial first year

Many systems require prorating that first year (or adopting a mid-year/half-year standard) instead of a full 12 months of spending if an asset was put into service halfway through the year.

Combining cumulative depreciation with depreciation expense

Depreciation expense represents a single period’s charge on the income statement, whereas accumulated depreciation represents the ongoing total on the balance sheet. Mix the two up, and book values simply don’t add up.

Using book-based methods for tax filings

Financial reporting conventions include straight-line, DDB, and SYD. MACRS, which use fixed IRS recovery times and percentage tables that don’t quite match these calculations, is typically used for US tax depreciation.

FAQ

Accumulated Depreciation Calculator FAQ

Calculation & method questions

What distinguishes accumulated depreciation from depreciation expense?+

Depreciation expense is the amount recorded in a single term, such as a year. Accumulated depreciation, on the other hand, is the running total of all the expenses incurred since the asset was purchased — it’s a balance sheet item rather than an income statement one. This accumulated depreciation calculator reports both figures side by side so you can see the difference at a glance.

Why would I choose an accelerated approach such as DDB over straight-line?+

Accelerated techniques can front-load tax deductions, subject to the tax regulations that actually apply to the asset. They also better match assets that lose most of their value or usefulness early on, such as cars or computer equipment.

Why is book value always higher than salvage value?+

Because accounting rules prohibit accumulated depreciation from erasing salvage value — that’s what an item is still anticipated to be worth at the end of its useful life, typically from resale or scrap.

What happens if I don’t know the total projected units of production?+

In that case, this method relies on an acceptable engineering or manufacturer estimate instead — for example, the total projected machine hours or units the equipment is rated to generate.

Tax & reporting questions

For US tax returns, is this the same as MACRS depreciation?+

No — MACRS is a separate IRS system with its own set recovery intervals and percentage tables, so it differs from traditional straight-line or declining-balance formulas. Use this accumulated depreciation calculator for financial reporting estimates instead; for actual tax depreciation, refer to IRS guidelines or a tax professional.

Is it possible to change methods midway through an asset’s life?+

Sometimes. Certain accounting frameworks permit switching from an accelerated method to straight-line once straight-line would result in a higher remaining-year expense. That said, method changes typically need to be applied consistently and disclosed, so consult your accountant before changing anything on an asset that’s currently in use.

Which calculator do you need?

More Calculators Like This Accumulated Depreciation Calculator

Sources & methodology

Accumulated Depreciation Calculator: Formula References

Types of Depreciation Methods. Corporate Finance Institute. Formulae and worked examples for straight-line, double declining balance, and sum-of-years-digits.
Accelerated Depreciation — Overview, Examples, Methods. Corporate Finance Institute. DDB and SYD as accelerated methods, including the never-below-salvage floor.
Averkamp H. How Do I Compute the Units of Production Method of Depreciation? AccountingCoach. Units-of-production (units-of-activity) rate and expense calculation.
Publication 946, How To Depreciate Property. Internal Revenue Service. MACRS recovery times, conventions, and the ways that US tax depreciation is different from the previously mentioned book approaches.