Business and accounting · Asset depreciation
Depreciation calculator.
Enter the cost, salvage value and life of an asset and choose a method. Get the yearly expense, accumulated depreciation and book value, or use the IRS MACRS percentages for 3, 5, 7 and 10-year property.
Straight-line expenses (cost − salvage) ÷ life each year. Declining balance expenses a fixed percentage of the remaining book value. MACRS is the U.S. tax method: multiply the cost by the Table A-1 percentage for the recovery year, with no salvage value.
Your asset
Your estimate
How each method works
Straight-line: (cost − salvage) ÷ life, the same every year. Declining balance: each year, book value × (factor ÷ life); depreciation never takes book value below salvage, and the optional switch uses straight-line on the remaining depreciable amount once that is larger. Sum-of-the-years-digits: (cost − salvage) × remaining life ÷ (life × (life + 1) ÷ 2), so the early years are larger. MACRS: cost × the percentage in IRS Publication 946 Table A-1 for the recovery year.
MACRS Table A-1 (half-year convention, percent)
| Year | 3-year | 5-year | 7-year | 10-year |
|---|---|---|---|---|
| 1 | 33.33 | 20.00 | 14.29 | 10.00 |
| 2 | 44.45 | 32.00 | 24.49 | 18.00 |
| 3 | 14.81 | 19.20 | 17.49 | 14.40 |
| 4 | 7.41 | 11.52 | 12.49 | 11.52 |
| 5 | 11.52 | 8.93 | 9.22 | |
| 6 | 5.76 | 8.92 | 7.37 | |
| 7 | 8.93 | 6.55 | ||
| 8 | 4.46 | 6.55 | ||
| 9 | 6.56 | |||
| 10 | 6.55 | |||
| 11 | 3.28 |
Worked example
A $10,000 asset with $1,000 salvage and a 5-year life: straight-line is $1,800 a year; sum-of-the-years-digits is $3,000, $2,400, $1,800, $1,200 and $600; double-declining with the switch is $4,000, $2,400, $1,440, $864 and $296. Under MACRS 5-year, $10,000 gives $2,000, $3,200, $1,920, $1,152, $1,152 and $576.
What this page does not do
- MACRS here uses only Table A-1 (general depreciation system, half-year convention). It does not cover the mid-quarter convention, the alternative depreciation system, real property tables, the section 179 deduction, bonus depreciation or listed-property limits. Which property class an asset belongs to is set by the IRS, not by this page.
- The other methods are accounting methods. Your books and your tax return may use different ones.
- It assumes a full first year and does not prorate by months in service.
Official source: IRS Publication 946 (2025), How To Depreciate Property, Appendix A, Table A-1, read October 4, 2026.
Frequently asked questions
Which depreciation method should I use?
For U.S. tax returns most business property uses MACRS. For financial statements, straight-line is the most common. Your accountant picks the method; this page shows what each produces.
What is salvage value?
The amount you expect an asset to be worth at the end of its useful life. MACRS ignores salvage and depreciates the full cost.
Why does a 5-year MACRS asset take six years?
The half-year convention treats the asset as placed in service mid-year, so the first and last years each carry half a year of depreciation.
Does this include the section 179 deduction?
No. Section 179 and bonus depreciation can change the first-year deduction and are not modelled.
Estimate only
This page is educational and is not tax or accounting advice. Property classes, conventions and elections can change the result; confirm with Publication 946 or a tax professional. Calculations run in your browser; nothing is sent anywhere.