Declining Balance Depreciation Calculator
Reducing-balance depreciation at any rate, including double-declining — with the year-by-year charge and the point where straight line overtakes it.
Declining balance charges a fixed percentage of the remaining book value, so the expense is largest in year one and falls every year after.
How the declining balance depreciation calculator works
Declining balance charges a fixed percentage of the remaining book value, so the expense is largest in year one and falls every year after. Double-declining uses twice the straight-line rate.
Because it is a percentage of a shrinking number, it never quite reaches zero — which is why real schedules switch to straight line for the remaining life once that becomes the larger charge. This shows where that crossover falls.
Formula: year charge = book value × rate; double-declining rate = 2/life
Worked examples
| Inputs | This year’s depreciation | Note |
|---|---|---|
| Double-declining over 8 years | 4,218.75 | 25% a year |
| A 1.5 factor | 4,022.83 | gentler acceleration |
| Year one | 10,000 | the largest charge |
FAQFrequently asked questions
What is double-declining balance?
Twice the straight-line rate applied to the remaining book value each year. On an eight-year life that is 25% a year rather than 12.5%.
Why does it never reach zero?
Because each year takes a percentage of what is left. Real schedules switch to straight line for the remaining life once that gives the larger charge.
When should I use it?
For assets that lose value fastest when new — vehicles, computers, most equipment. It matches the expense to the actual pattern of consumption.
Does it change the total depreciation?
No. The same amount is written off over the life; only the timing differs. That timing is worth real money in tax terms.
What factor should I use?
Two is the common convention. Some jurisdictions prescribe 1.5 or 2.5 for particular asset classes, so check the rules that apply to you.
Where these figures come from
- Corporate Finance Institute — EBITDA — why EBITDA is a non-GAAP measure with no single definition
- US SEC — Non-GAAP Financial Measures, Compliance & Disclosure Interpretations — the disclosure rules that exist precisely because EBITDA is not standardized
- US Securities and Exchange Commission — the US securities regulator
Last checked: September 2026. These are standard management-accounting definitions; where a term has no single agreed definition, the page says so.