Plan depreciation with precision across straight‑line declining balance SYD units of production WDV and MACRS. See monthly schedules book versus tax deferred tax rollforward disposal gains and losses and NBV charts. Export clean CSV and PDF files and save scenarios for fast what if analysis in your finance workflow. Accurate methods policy notes included.
| # | Period | Beg NBV | Depreciation | Accum Dep’n | End NBV | Method Note |
|---|
| # | Period | Book Dep | Tax Dep | Δ Dep | Book Accum | Tax Accum | Temp Diff | Deferred Tax |
|---|
This calculator builds a month‑by‑month depreciation schedule from your assumptions and can simultaneously keep a separate book and tax basis. Start by entering the cost basis components, residual value, useful life, and in‑service date. Select a method for each book and tax column and, if you are modeling declining balance, choose whether to auto‑switch to straight‑line at the optimal point. For units of production, you can supply a total capacity, a default monthly rate, or paste a custom series of units; the engine will allocate the depreciation base proportionally. For MACRS, editable reference tables apply the standard half‑year convention, which is useful for quick what‑ifs even though precise filing rules may be more nuanced.
Regardless of method, the engine never allows net book value to fall below the residual floor. Disposal is handled by stopping the schedule in the month of your specified date and computing gain or loss as proceeds minus net book value at disposal. The Book vs Tax tab compares period expenses, accumulated amounts, temporary differences, and a rolling deferred tax balance using your chosen tax rate. All tables export to CSV for analysis and to a paginated PDF for reporting and audit support. Scenarios let you save multiple input sets in your browser to run comparisons without retyping.
| Method | Core Formula | Notes |
|---|---|---|
| Straight‑Line (SL) | Depreciation per period = (Cost − Residual) ÷ Number of periods | Produces equal expense each period; remaining life is tracked in months. |
| Declining Balance (DB) | Depreciation = Rate × Beginning NBV; rate = factor ÷ life (factor 2.0 for 200% or 1.5 for 150%) | Optional auto‑switch to SL when SL becomes higher; never goes below residual. |
| Sum of the Years’ Digits (SYD) | Annual Depreciation = Base × (Remaining years ÷ n(n+1)/2); monthly = annual ÷ 12 | Front‑loads expense smoothly; n is life in years. |
| Units of Production (UOP) | Depreciation = Base × (Actual units ÷ Total capacity) | Base = Cost − Residual; aligns expense to usage (units or hours). |
| Written‑Down Value (WDV) | Depreciation = Annual rate × Beginning NBV (apportioned monthly) | Common in many jurisdictions; user supplies the annual percentage. |
| MACRS | Depreciation = Cost × Table % for the year, then allocated monthly | Tables reflect half‑year convention; ignores residual for computation. |
Suppose a machine enters service on January 1 with a cost basis of 25,000, residual of 2,000, and a useful life of five years. Under straight‑line, the base is 23,000 and the monthly expense is 23,000 ÷ 60 = 383.33. Under 200% declining balance, the annual rate is 40%, which the calculator prorates monthly. The model evaluates each month whether switching to straight‑line yields a higher amount so that expense is accelerated early and smoothed later. If the asset is sold after thirty months for 10,000, the tool stops the schedule in that month and reports gain or loss by comparing proceeds with the then‑current net book value.
| Metric | Value |
|---|---|
| Annual depreciation | 4,600.00 |
| Year‑end accumulated depreciation | 4,600.00 |
| Ending NBV | 20,400.00 |
This article and tool are for education and planning only and do not constitute accounting or tax advice.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.