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Fixed Declining Balance Depreciation Calculator

Fixed Declining Balance Depreciation
Placed in Service:
 
Answer:
Cost: $575,000.00, Salvage: $5,000.00
Life: 10 years, Convention: Full-Month
First Year: 4 months
Depreciation
Year
Depreciation
Expense
2013
$72,450
2014
$189,964
2015
$118,158
2016
$73,494
2017
$45,713
2018
$28,434
2019
$17,686
2020
$11,001
2021
$6,842
2022
$4,256
2023
$1,765

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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

Sample Full Depreciation Schedule

Cost: $575,000.00, Salvage: $5,000.00
Life: 10 years, Convention: Full-Month
First Year: 4 months

Depreciation Schedule
Year
 
Book Value
Year Start
Depreciation
Percent
Depreciation
Expense
Accumulated
Depreciation
Book Value
Year End
2013
$575,000
37.80%
$72,450
$72,450
$502,550
2014
$502,550
37.80%
$189,964
$262,414
$312,586
2015
$312,586
37.80%
$118,158
$380,571
$194,429
2016
$194,429
37.80%
$73,494
$454,065
$120,935
2017
$120,935
37.80%
$45,713
$499,779
$75,221
2018
$75,221
37.80%
$28,434
$528,212
$46,788
2019
$46,788
37.80%
$17,686
$545,898
$29,102
2020
$29,102
37.80%
$11,001
$556,899
$18,101
2021
$18,101
37.80%
$6,842
$563,741
$11,259
2022
$11,259
37.80%
$4,256
$567,997
$7,003
2023
$7,003
37.80%
$1,765
$569,762
$5,238

Fixed Declining Balance Depreciation Formulas

The fixed declining balance calculation is based on the Excel® function DB.  The fixed-declining balance method computes depreciation at a fixed rate. DB uses the following formulas to calculate depreciation for a period:

  1. Depreciation Rate = 1 - [(Salvage / Cost)(1 / life)]
  2. Depreciation for any Period = (Original Cost - Total Depreciation from Prior Periods) * Depreciation Rate
  3. Depreciation for the first and last periods are special cases when the first period is not a full 12 months.  The number of Months is used to calculate the fractional values.
    • Depreciation for the first period = Cost * Rate * Months / 12
    • Depreciation for the last period = ((Cost - Total Depreciation from prior periods) * Rate * (12 - Months)) / 12

Microsoft® Excel® Functions Equivalent: DB

The Excel equivalent function for Fixed Declining Balance Method is DB(cost,salvage,life,period,month). With it you can calculate depreciation for the chosen year. The number of months in the first year, "month" defaults to 12.  Change the value of months if you are calculating partial years at the start and finish.

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



 

Cite this content, page or calculator as:

Furey, Edward "Fixed Declining Balance Depreciation Calculator"; from http://www.calculatorsoup.com - Online Calculator Resource.

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