Declining Balance Depreciation

Annual Depreciation = BV * R

Where:
BV = Book value at the beginning of the given year
R = rate of depreciation

This calculator is used to find the amount of money that an asset (something that you own or have earned) is worth each year based on its value of depreciation. In this method of depreciation, the asset loses more value at the beginning of its life than at the end (as opposed to straight-line depreciation in which the asset loses an equal amount of value each year.)

The book value of the beginning of the given year is the original value subtracted by (minus) the amount the asset has depreciated so far.; So, for example, if a $12,000 asset depreciated by $1,700 the first year, it's BV at the beginning of the second year would be $10,300 (12,000 - 1,700.)

Since there are different amounts/kinds of declining balance depreciation, the value of R is based on the asset's straight-line rate of depreciation. For example, R for double declining balance is 2(straight-line rate) and R for 150% declining balance is 1.5(straight-line rate).

To use this calculator, enter the initial cost of the asset, its rate of depreciation, and estimated amount of years that it will last in the respective boxes and press "Solve." You will be given a graph of the asset's amount of depreciation each year, the total amount it's depreciated so far for each year, and the amount it's worth after each year.

Note: When you enter the values make sure not to include a dollar sign or comma as it will just give you an error message.