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Asset Book Value by Three Depreciation Methods

Compare straight-line, declining-balance and sum-of-years-digit depreciation using cost, residual value and useful life.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

For cost 1000, residual value 200, a five-year life and year two, straight-line expense is 160 and end-of-year book value is 680.

Straight-line expense = (cost − residual)/life; book value = cost − years × expense.

Worked example

Enter these known values and leave the other values blank.

Original cost
1000 USD
Salvage value
200 USD
Lifetime
5 yrs
End book value after...
2 yrs
Depreciation expense
160 USD
End book value
680 USD

Assumptions and limitations

  • These are mathematical book-value schedules, not jurisdiction-specific tax deductions. No partial first year, asset disposal, impairment or tax convention is modeled.
  • Use positive whole useful life and a whole year from one through useful life; residual value must be between zero and cost.
  • Declining balance chooses a fixed rate that reaches the entered residual value over the useful life. It is not automatically double-declining balance.
  • Amounts use a single consistent currency. Currency selector conversion factors are a captured static snapshot; they are not current FX quotes.
  • Clear the unknown field before solving an inverse. Locks keep known values fixed; contradictory locked values require correction.
  • Domain review limits calculations to the documented finite scenario; original captured equations, inverses and unit options are retained.

Common questions

How should I interpret the example?

For cost 1000, residual value 200, a five-year life and year two, straight-line expense is 160 and end-of-year book value is 680.

References

Require the documented finite model domain. Asset cost must be positive. Useful life must be a whole number of years. Use a whole year from one through useful life. Residual value must be between zero and original cost. Integer membership is checked with isInteger, so ordinary, tiny and large fractional counts are rejected even when tolerant floor equality would pass. Year-count selectors divide the scaled value directly by the unchanged duration factor instead of multiplying by a separately rounded reciprocal; this keeps integral year inputs integral without rounding fractional inputs.

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