Under this method, the asset depreciates at a double rate. And the rate under this method is the straight-line depreciation rate which we calculate by dividing 100% from the life of the asset. This double-declining depreciation calculator calculates the depreciation of the assets with a useful life equal to five years or less.
The formula for calculating double-declining depreciation is:
| Double Declining Depreciation = 2 * Total Cost of the Asset * Straight Line Depreciation Rate |
For calculating the straight-line depreciation rate, consider the following formula:
| Straight Line Depreciation Rate = 100% / Life of Asset |
Double Declining Depreciation Calculator
How to Calculate using the Calculator?
This double-declining depreciation calculator will provide you with the calculation of depreciation for the asset with a useful life of five years or less. You simply have to insert the following details into the calculator to get the depreciation for each year for up to five years.
- Total Cost of the Asset
Enter the total cost of the asset that is to be capitalized. It includes all the expenses incurred before the asset has been put to use. And excludes the discount, if any.
- Scrap Value
The value at which we can sell or scrap the asset after its economic life gets over. The scrap value of an asset can be zero.
Also Read: Double Declining Depreciation
- Life of Asset
The life of an asset means the number of years up to which the asset will run efficiently and would be able to generate revenue for the company.
Excel Calculator – Double Declining Depreciation
You can also download our excel based calculator for Double Declining Depreciation.
Excel Calculator for Double Declining Depreciation (225 downloads )