Double Declining Balance Method Depreciation Calculator

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Double Declining Depreciation
$
$
Useful Life (Years):  
Placed in Service:    
Month:  
Year:  
Convention:  
 
Depreciation
Year
 
Depreciation
Expense
2011 $47,917
2012 $105,417
2013 $84,333
2014 $67,467
2015 $53,973
2016 $43,179
2017 $34,543
2018 $27,634
2019 $22,107
2020 $17,686
2021 $8,253
Scroll down for full schedule

Calculator Use

Use this calculator to calculate the accelerated depreciation by Double Declining Balance Method or 200% depreciation.  For other factors besides double use the Declining Balance Method Depreciation Calculator.

Inputs

Asset Cost
the original value of your asset or the depreciable cost; the necessary amount expended to get an asset ready for its intended use
Salvage Value
the value of the asset at the end of its useful life; also known as residual value or scrap value
Useful Life
the expected time that the asset will be productive for its expected purpose
Placed in Service
select the month and enter the year the asset started being used for its intended purpose
Year
enter 1 or 4 digits; enter a four digit year to use your actual years OR enter a 1 to list years using digits 1 through the last year
Convention
choose Full-Month, Mid-Month, Mid-Year or Mid-Quarter Convention; if you don't know, keep it at the common Full-Month

Depreciation Schedule

Cost: $575,000.00, Salvage: $5,000.00, Life: 10 years, Factor: 2
Convention: Full-Month, First Year: 5 months

Depreciation Schedule
Year
 
Book Value
Year Start
Depreciation
Percent
Depreciation
Expense
Accumulated
Depreciation
Book Value
Year End
2011 $575,000 8.33% $47,917 $47,917 $527,083
2012 $527,083 20.00% $105,417 $153,333 $421,667
2013 $421,667 20.00% $84,333 $237,667 $337,333
2014 $337,333 20.00% $67,467 $305,133 $269,867
2015 $269,867 20.00% $53,973 $359,107 $215,893
2016 $215,893 20.00% $43,179 $402,285 $172,715
2017 $172,715 20.00% $34,543 $436,828 $138,172
2018 $138,172 20.00% $27,634 $464,463 $110,537
2019 $110,537 20.00% $22,107 $486,570 $88,430
2020 $88,430 20.00% $17,686 $504,256 $70,744
2021 $70,744 11.67% $8,253 $512,510 $62,490

Double Declining Balance Depreciation Formulas

The double declining balance method is an accelerated depreciation method. Using this method the Book Value at the beginning of each period is multiplied by a fixed Depreciation Rate which is 200% of the straight line depreciation rate, or a factor of 2.  To calculate depreciation based on a different factor use our Declining Balance Calculator.

The double declining balance calculation does not consider the salvage value in the depreciation of each period however, if the book value will fall below the salvage value, the last period might be adjusted so that it ends at the salvage value.  When double declining balance method does not fully depreciate an asset by the end of its life, variable declining balance method might be used instead.

  1. Straight-Line Depreciation Percent = 100% / Useful Life
  2. Depreciation Rate = 2 x Straight-Line Depreciation Percent
  3. Depreciation for a Period = Depreciation Rate x Book Value at Beginning of the Period
  4. If the first year is not a full 12 months and is a number M months, the first and last years will be calculated
    • First Year Depreciation Rate = M/12 x Depreciation Rate
    • Last Year Depreciation Rate = (12-M)/12 x Depreciation Rate

Double Declining Balance Depreciation Example

An asset for a business cost $1,750,000, will have a life of 10 years and the salvage value at the end of 10 years will be $10,000.  You calculate 200% of the straight-line depreciation, or a factor of 2, and multiply that value by the book value at the beginning of the period to find the depreciation expense for that period.

  1. Straight-Line Depreciation Percent = 100% / 10 years = 10% / year
  2. Depreciation Rate = 2 x 10% = 20% / year
  3. Depreciation for a Period = 20% x Book Value at Beginning of the Period
    • Depreciation for Period 1 = 20% x $1,750,000 = $350,000
    • For Periods 2 and greater, depreciation is 20% x ($1,750,000 - Accumulated Depreciation )
    • Depreciation for Period 2 = 20% x ($1,750,000 - $350,000 ) =  $280,000
    • Depreciation for Period 3 = 20% x ($1,750,000 - $630,000 ) = $224,000
    • Etc ....

Full-Month, Mid-Month, Mid-Year, Mid-Quarter Conventions

Some accounting systems allow for Full-Month, Mid-Month, Mid-Year or Mid-Quarter Conventions.

  • For full month convention, for example, an asset placed in service in October will have 3 months in the first year to cover all of October, November and December.
  • For mid month convention, for example, an asset placed in service in October will have 2.5 months in the first year to cover 1/2 of October and all of November and December.
  • For mid year convention, for example, will have 6 months in the first and last years.
  • For mid quarter convention will have 1.5, 4.5, 7.5 or 10.5 for months in first year for service starting within the 4th, 3rd, 2nd or 1st quarter respectively.

Microsoft® Excel® Functions Equivalent: DDB

The Excel equivalent function for Double Declining Balance Method is DDB(cost,salvage,life,period,factor) will calculate depreciation for the chosen period. "factor" defaults to 2, double declining balance method.  Changing the value of "factor" can be accomplished using our Declining Balance Method Depreciation Calculator.

(Microsoft® and Excel® are registered trademarks of Microsoft Corporation)

 

Cite this content, page or calculator as:

Furey, Edward "Double Declining Balance Depreciation Calculator" From http://www.CalculatorSoup.com - Online Calculator Resource.