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:

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.

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