Depreciation calculator
See how the value of equipment, vehicles or furniture drops each year, using straight-line or declining-balance depreciation. The table shows the book value for every year.
How to use it
- You enter the data
- Smallo works it out
- You get the result
- Enter the purchase cost, the salvage value and the useful life in years.
- Choose straight-line for an equal amount each year, or declining balance for faster early losses.
- Use the yearly table to record the value of the asset each year.
Frequently asked questions
What is straight-line depreciation?
The same amount is written off each year: (cost minus salvage value) divided by the useful life in years. A $10,000 machine with $1,000 salvage value and 5 years loses $1,800 per year.
When should I use declining balance?
When an asset loses more value early, like computers or vehicles. Smallo uses double declining balance: each year the asset loses 2 ÷ its useful life of its remaining value (40% for 5 years), switching to straight line when that gives more, so it ends exactly at the salvage value. Check your accountant's rules for tax purposes.