# Fixed Declining Balance Depreciation Calculator

## 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. Create and print depreciation schedules.

## 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 - Fiscal Year
- The starting and ending months for your fiscal year, your tax year. For personal tax filing with the IRS, your likely fiscal year is Jan-Dec, a regular calendar year. Some companies may have fiscal years that run, for example, Sep-Aug. The US Government fiscal year is Oct-Sep.
- 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

Year Start

Percent

Expense

Depreciation

Year End

## 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.

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