Declining Balance Depreciation Calculator

Declining balance depreciation is an accelerated method that applies a constant rate to the decreasing book value each year. This front-loads depreciation, giving higher expenses in early years and lower in later years.

Double declining balance uses twice the straight-line rate. If an asset has a 5-year life, the straight-line rate is 20%, so DDB uses 40%. The rate is applied to the remaining book value each year, not the original cost.

200% (DDB) uses double the straight-line rate for faster depreciation. 150% uses 1.5 times the rate for moderately accelerated depreciation. DDB is more aggressive and front-loads more expense into early years.

Declining balance switches to straight-line when straight-line depreciation of the remaining book value over remaining years exceeds the declining balance amount. This ensures the asset is fully depreciated to salvage value by the end of its life.

Use it for assets that lose value rapidly in early years: vehicles, computers, electronics, and technology equipment. It matches expense recognition with the period of greatest use and benefit.

No. Declining balance depreciation stops when book value reaches salvage value. The calculator automatically limits depreciation in the final years to prevent the book value from falling below the estimated salvage value.