Declining balance depreciation calculator
Declining balance charges a fixed percentage of the remaining book value each year, so the early years absorb most of the cost.
years
2 is double-declining, 1.5 is 150% declining balance.
Depreciation in that year
3600.00
- Book value at end of that year
- 5400.00
- Accumulated depreciation
- 19 600.00
- Annual rate applied
- 40.000 %
Show the working
- Asset cost = 25 000
- Salvage value = 3000
- Useful life = 5
- Rate multiple = 2
- Year to value = 3
- rate = 2 / 5 = 0.4
- raw_book = 25 000 * (1 - 0.4)^3 = 5400
- Book value at end of that year = max(5400, 3000) = 5400
- prev_book = max(25 000 * (1 - 0.4)^max(3-1, 0), 3000) = 9000
- Depreciation in that year = 9000 - 5400 = 3600
- Accumulated depreciation = 25 000 - 5400 = 19 600
- Annual rate applied = 0.4 * 100 = 40
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- rate = multiple / useful life
- book value after y years = cost x (1 - rate)^y, floored at the salvage value
Declining balance never mathematically reaches zero, so schemes switch to straight line near the end or stop at salvage value, which is what the floor here does.
This is arithmetic, not financial advice. Real products carry fees, tax treatment and terms that no formula captures.