Double Declining Depreciation Calculator

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.

  • 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.

Sanjay Borad

Sanjay Bulaki Borad

Sanjay Borad is the founder & CEO of eFinanceManagement. He is passionate about keeping and making things simple and easy. Running this blog since 2009 and trying to explain "Financial Management Concepts in Layman's Terms".

Leave a Comment