Sum-of-the-years-digits depreciation calculator
Sum-of-years-digits front-loads depreciation less aggressively than double declining balance, and always reaches the salvage value exactly.
years
Depreciation in that year
5866.67
- Accumulated depreciation
- 13 200.00
- Book value
- 11 800.00
- Sum of the year digits
- 15
Show the working
- Asset cost = 25 000
- Salvage value = 3000
- Useful life = 5
- Year to value = 2
- depreciable = 25 000 - 3000 = 22 000
- Sum of the year digits = 5 * (5 + 1) / 2 = 15
- remaining = max(5 - 2 + 1, 0) = 4
- Depreciation in that year = 22 000 * 4 / 15 = 5866.67
- Accumulated depreciation = 22 000 * (15 - (5 - 2)*(5 - 2 + 1)/2) / 15 = 13 200
- Book value = 25 000 - 13 200 = 11 800
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
- sum of years digits = n(n+1)/2
- depreciation in year y = (cost - salvage) x (n - y + 1) / sum of years digits
This is arithmetic, not financial advice. Real products carry fees, tax treatment and terms that no formula captures.