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Fixed Declining Balance Method Depreciation Calculator
Fixed Declining Balance Depreciation Schedule
Example - Cost: $575,000.00, Salvage: $5,000.00, Life: 10 years , First Year: 12 months
Year
|
Book Value
Year Start |
Depreciation
Percent |
Depreciation
Expense |
Accumulated
Depreciation |
Book Value
Year End |
| 1 |
$575,000 |
37.80% |
$217,350 |
$217,350 |
$357,650 |
| 2 |
$357,650 |
37.80% |
$135,192 |
$352,542 |
$222,458 |
| 3 |
$222,458 |
37.80% |
$84,089 |
$436,631 |
$138,369 |
| 4 |
$138,369 |
37.80% |
$52,304 |
$488,934 |
$86,066 |
| 5 |
$86,066 |
37.80% |
$32,533 |
$521,467 |
$53,533 |
| 6 |
$53,533 |
37.80% |
$20,235 |
$541,703 |
$33,297 |
| 7 |
$33,297 |
37.80% |
$12,586 |
$554,289 |
$20,711 |
| 8 |
$20,711 |
37.80% |
$7,829 |
$562,118 |
$12,882 |
| 9 |
$12,882 |
37.80% |
$4,869 |
$566,987 |
$8,013 |
| 10 |
$8,013 |
37.60% |
$3,013 |
$570,000 |
$5,000 |
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:
- Depreciation Rate = 1 - ((Salvage / Cost) ^ (1 / life))
- Depreciation for any Period =
(Original Cost - Total Depreciation from Prior Periods) * Depreciation Rate
- 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)
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