Calculate asset depreciation using straight-line, double declining balance, or MACRS methods with a complete year-by-year schedule.
Total: $9000.00 over 5 years
| Year 1 | $1800.00 (book: $8200.00) |
| Year 2 | $1800.00 (book: $6400.00) |
| Year 3 | $1800.00 (book: $4600.00) |
| Year 4 | $1800.00 (book: $2800.00) |
| Year 5 | $1800.00 (book: $1000.00) |
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Straight-Line: (Cost − Salvage) ÷ Useful Life
DDB: Book Value × (2 ÷ Useful Life)
MACRS: Cost × IRS Rate (half-year convention)
Straight-line spreads the cost evenly over the useful life: (Cost − Salvage) ÷ Useful Life. It's the simplest and most common method.
MACRS (Modified Accelerated Cost Recovery System) is required for US tax purposes on most business assets. It uses accelerated rates and half-year conventions.
DDB depreciates at 2× the straight-line rate applied to the remaining book value. It front-loads depreciation for faster deductions.
The IRS specifies MACRS recovery periods: 5-year (cars, computers), 7-year (office furniture, equipment), 15-year (land improvements), 27.5-year (residential rental), 39-year (commercial real estate).
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.