How to use the Asset depreciation calculator
Enter starting value, annual decline (%), and years. Choose the currency for your inputs and read the result as you change the values.
How it works and formula
Remaining value = starting value × (1 − annual decline rate) raised to the number of years.
Worked example
| Starting value | 10000 |
|---|---|
| Annual decline (%) | 15 |
| Years | 5 |
Result
Remaining value $4,437.05
Choosing your inputs
Enter the starting value and the percentage it loses each year. The rate applies to the previous year’s remaining value. For equipment that loses a fixed cash amount every year, this model will give a different schedule.
How to interpret the result
The first year of a $10,000 asset losing 15% leaves $8,500. In year two the same rate removes $1,275, leaving $7,225. Use the comparison to see how holding the asset longer affects its estimated value.
Frequently asked questions
Is this straight-line depreciation?
This is a declining-balance estimate. Each year’s decline is applied to the remaining value.
Can I use this for tax depreciation?
This estimates a constant percentage decline. A tax schedule may use a different method, recovery period, or residual value.