Depreciation Calculator

Calculate the depreciation of your business assets.

What this calculator does

Choose straight-line or declining balance depreciation method.

When to use this calculator

This calculator earns its keep at decision points: before accepting a loan, comparing investment platforms, or negotiating salary. The difference between the headline figure and the true cost or return is only visible with accurate arithmetic.

Common mistakes

The most consequential mistake is comparing financial figures that are not on the same basis — gross versus net, before-tax versus after-tax, or nominal versus inflation-adjusted. Always check whether figures you are comparing use the same definition.

Real-world scenarios

A small business owner compares two financing options for new equipment: a 5-year bank loan at 5.2% versus a leasing arrangement with a monthly fee. The calculator translates both into a total cost figure, making the comparison straightforward.

Frequently asked questions

What is straight-line depreciation?

Each year the same amount is depreciated: (Cost − Residual Value) / Useful Life.

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