Accumulated Depreciation Calculator

Accumulated depreciation is the sum of depreciation charges recorded for an asset through a selected year. In this simple cost model, book value equals original cost minus accumulated depreciation. Book value is an accounting amount, not a prediction of resale price.

IFRS Foundation, IAS 16 Property, Plant and Equipment describes depreciation as part of measuring the carrying amount of property, plant, and equipment (source reviewed September 2026). The 2021 issued IAS 16 text, paragraphs 50–62 explains depreciable amount, useful life, residual value, and method selection. It calls for reviewing useful life and residual value at least each financial year-end under IFRS.

Each method starts with depreciable amount = cost − salvage value. The calculator uses whole years and shows the schedule through the year you select.

Straight-line

Annual depreciation = (cost − salvage value) ÷ useful life. With unchanged estimates, the charge is the same each year.

Double declining balance

Annual depreciation = opening book value × (2 ÷ useful life), limited so book value never falls below salvage value. This calculator does not switch to straight-line in later years, so book value can remain above salvage value at the end of useful life.

Sum-of-years digits

Annual depreciation = (cost − salvage value) × (years remaining ÷ sum of year numbers). For a five-year life, that denominator is 1 + 2 + 3 + 4 + 5 = 15.

These are mathematical illustrations of three schedules, not a recommendation to choose a particular method. The appropriate accounting method should reflect the expected pattern of consuming the asset's benefits; tax depreciation may use different conventions or rules.

1. Enter a positive asset cost and an estimated salvage value between zero and cost.
2. Enter a whole-number useful life and a selected year from 1 through that life.
3. Choose a method and review the annual charge, total accumulated depreciation, book value, and schedule through the selected year.

For example, a $1,000 asset with $100 salvage value and a five-year life has $900 of depreciable amount. In year 2, straight-line annual depreciation is $180, accumulated depreciation is $360, and book value is $640. The calculator produces those figures. With the same inputs, double declining balance gives $240 annual depreciation in year 2 and $360 book value.

The form rejects nonfinite amounts, salvage above cost, fractional years, and a selected year beyond useful life. The technical limit is 1,000 years. A change in estimates, asset disposal, impairment, partial first years, or additional costs requires a more complete accounting schedule.

Cost is the entered amount to depreciate before salvage. Salvage or residual value is the estimated value retained at the end of useful life. Useful life is the entered number of years over which this simple schedule runs. Accumulated depreciation is the sum of charges through the selected year.

This model assumes one asset, one unchanged cost, and one unchanged salvage estimate. It does not calculate fair value, impairment, taxes, or a jurisdiction-specific statutory depreciation allowance.

Why does double declining balance sometimes end above salvage value?

The selected method applies a declining percentage each year and only caps charges at salvage value. It does not make a later switch to another method. If your policy requires a switch or revised estimate, use a schedule built for that policy.

Can I use the result in tax or financial statements?

This is an educational calculation based on your assumptions. Financial reporting and tax rules vary by jurisdiction and may require different cost bases, lives, conventions, or methods. Check your applicable rules and records with a qualified professional before filing or reporting.