AccountantAsset Depreciation Calculator
Model business asset valuation reductions. Compare Straight-Line and US tax MACRS schedules side-by-side.
Asset Parameters
Depreciation Schedule Curve
Year-by-Year Depreciation Schedule
| Year | Beginning Book Value | Depreciation Expense | Accumulated Depreciation | Ending Book Value |
|---|
Asset Depreciation Accounting Guidelines
Depreciation allows small businesses to write down the cost of physical assets (machinery, computers, vehicles) over their productive lifetime, matching capital wear-and-tear against generated revenue.
Straight-Line Method
The asset cost (less salvage value) is written off in equal annual amounts:
Double Declining Balance Method
An accelerated bookkeeping method that writes off value twice as fast as Straight-Line:
US Tax MACRS System
For US Federal Tax filings (IRS Form 4562), companies must use the **Modified Accelerated Cost Recovery System (MACRS)**. Under MACRS, salvage values are disregarded ($0), and assets are assigned standard tax lives (e.g. 5-year for technology) using pre-calculated IRS depreciation rate percentages.