Depreciation Calculator
Updated on 22 Oct 2026 · Checked by Aotob
In the first year the asset loses $5,000 of value.
It is written down from $30,000 to $5,000 over 5 years.
First year depreciation
$5,000
Straight line spreads the cost evenly. Tax rules set their own rates: MACRS in the US, capital allowances in the UK and Ireland, CCA in Canada.
Show the working
Each year = (30,000 − 5,000) ÷ 5 = 5,000
Depreciation schedule
| Year | Depreciation | Book value |
|---|---|---|
| 1 | 5,000 | 25,000 |
| 2 | 5,000 | 20,000 |
| 3 | 5,000 | 15,000 |
| 4 | 5,000 | 10,000 |
| 5 | 5,000 | 5,000 |
Questions people ask
What is depreciation?
Spreading the cost of something you use for years, like a van or machine, over its useful life instead of counting it all at once.
Straight line or declining balance?
Straight line takes the same amount each year. Double declining takes twice the straight-line rate on what is left, so more early on.
Is this what the tax office allows?
Tax rules have their own schedules: MACRS in the US, capital allowances in the UK and Ireland, capital cost allowance in Canada, and effective life tables in Australia.
Updated 22 Oct 2026Source: Standard business accounting formulasChecked by AotobBook depreciation; tax rules differ. Not tax advice.Report an issue