What is the declining balance depreciation method?

The declining balance method depreciates an asset at a fixed percentage of its remaining book value each year. Because the book value decreases annually, so does the depreciation charge, resulting in higher expenses in early years and lower expenses later.

How is the depreciation rate calculated?

The rate equals the multiplier divided by the useful life. For example, a 5-year asset with a 2x multiplier (double-declining balance) uses a rate of 2 / 5 = 40% per year.

What is double-declining balance (DDB) depreciation?

DDB is declining balance with a multiplier of 2. It depreciates assets twice as fast as straight-line, which is often preferred for tax purposes because it front-loads deductions. Most companies switch to straight-line in later years once straight-line gives a larger deduction.

What happens when book value would fall below salvage value?

Depreciation stops once the book value reaches the salvage value. The final year's charge is capped so book value never drops below salvage value.

Can I use a multiplier other than 1.5 or 2?

Yes. Enter any positive multiplier in the custom field. A multiplier of 1.5 is called 150% declining balance; 2 is double-declining. Higher multipliers accelerate depreciation further.

Declining Balance Depreciation Calculator

Enter asset cost, salvage value, useful life, and depreciation multiplier to get a full year-by-year depreciation schedule with a chart.

Asset Details

Currency Symbol

Asset Cost (Purchase Price)

Salvage Value (Residual)

Useful Life (Years)

Depreciation Multiplier

Custom:

Asset Cost

—

Total Depreciation

—

DB Rate / Year

—

Salvage Value

—

Book Value vs. Depreciation by Year

Depreciation Schedule

Year	Beginning BV	Depreciation	Accum. Depr.	Ending BV

Fill in the asset details and click Calculate

A full depreciation schedule will appear here

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Summary

The Declining Balance Depreciation Calculator computes year-by-year depreciation charges and remaining book values using the declining balance method. Supports standard, 150%, and double-declining balance (DDB) schedules.

How it works

The tool applies a fixed depreciation rate (multiplier / useful life) to the asset's current book value each year. Depreciation is capped when book value would otherwise fall below salvage value. Results are displayed in a schedule table and a Chart.js bar chart.

Use cases

Accountants preparing financial statements that require accelerated depreciation.
Business owners estimating tax deductions using double-declining balance depreciation.
Finance students comparing straight-line depreciation to accelerated methods.
CFOs modeling asset write-downs and capital expenditure impact over multiple years.

Frequently Asked Questions

Last updated: 2026-05-23 · Reviewed by Nham Vu