Fixed Declining Balance Method Depreciation Calculator

Fixed Declining Balance Depreciation
$
$
Useful Life (Years):  
Placed in Service:    
Month:  
Year:  
Convention:  
 
Depreciation
Year
 
Depreciation
Expense
2011 $90,563
2012 $183,117
2013 $113,899
2014 $70,845
2015 $44,066
2016 $27,409
2017 $17,048
2018 $10,604
2019 $6,596
2020 $4,103
2021 $1,489
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
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 37.80% $90,563 $90,563 $484,438
2012 $484,438 37.80% $183,117 $273,680 $301,320
2013 $301,320 37.80% $113,899 $387,579 $187,421
2014 $187,421 37.80% $70,845 $458,424 $116,576
2015 $116,576 37.80% $44,066 $502,490 $72,510
2016 $72,510 37.80% $27,409 $529,899 $45,101
2017 $45,101 37.80% $17,048 $546,947 $28,053
2018 $28,053 37.80% $10,604 $557,551 $17,449
2019 $17,449 37.80% $6,596 $564,147 $10,853
2020 $10,853 37.80% $4,103 $568,249 $6,751
2021 $6,751 37.80% $1,489 $569,738 $5,262

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.