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

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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