Result
Depreciation for the year
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Depreciation rate = acceleration factor ÷ useful life. Each year this rate is applied not to the original cost but to the book value at the start of the year — so the write-off is largest in the early years and gradually shrinks, unlike the straight-line method's equal amounts.
Book value at the end of year t = original cost × (1 − depreciation rate)^t, but never below the salvage value: once the computed book value reaches salvage value, depreciation stops.
The declining balance method usually reflects real value loss more accurately for assets with high obsolescence — equipment, electronics, vehicles — which lose more value in their early years of use. For even write-offs, use the separate straight-line depreciation calculator.