Free Depreciation Calculator for Small Business
Calculate asset depreciation
All methods: Straight-line, MACRS, DDB, Sum-of-Years' Digits, Units of Production, Section 179, and Bonus Depreciation. CPA-grade accuracy, free.
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Calculate asset depreciation for your business with our free depreciation calculator. Supports straight-line, declining balance, and MACRS methods — the schedules the IRS actually requires for tax reporting. Enter your asset cost, useful life, and salvage value, and get a complete year-by-year depreciation schedule instantly. Whether you bought a vehicle, equipment, furniture, or technology for your business, understanding depreciation helps you maximize tax deductions and accurately report asset values on your balance sheet. No signup, no accounting degree required. This tool walks you through the right method for your asset type and generates a schedule you can hand directly to your accountant or plug into your tax return.
How to Calculate Depreciation
- 1
Enter your asset details
Input the asset name, purchase date, original cost, and estimated salvage value (what it'll be worth at end of life).
- 2
Select a depreciation method
Choose straight-line for even annual deductions, declining balance for accelerated front-loading, or MACRS for IRS tax depreciation.
- 3
Set the useful life
Enter the asset's useful life in years. For MACRS, the tool suggests the correct recovery period based on asset class.
- 4
Review the depreciation schedule
See a year-by-year breakdown showing annual depreciation expense, accumulated depreciation, and remaining book value.
- 5
Export your schedule
Download the full depreciation table as a PDF or CSV for your records, tax filing, or bookkeeper.
Why Depreciation Matters for Your Business
Maximize tax deductions
Depreciation lets you deduct the cost of business assets over time instead of all at once. Choosing the right method can significantly reduce your tax bill each year.
Accurate financial statements
Your balance sheet needs to reflect the true value of your assets. Depreciation schedules keep your books accurate and audit-ready.
MACRS compliance
The IRS requires MACRS for most business assets. This calculator includes the correct MACRS percentages and recovery periods so you don't have to look them up.
Free with no limits
Calculate depreciation for as many assets as you need. No per-asset charges, no signup, no software subscription.
Frequently Asked Questions
What is the straight-line depreciation method?
Straight-line depreciation spreads the cost of an asset evenly across its useful life. The formula is: (Cost - Salvage Value) ÷ Useful Life = Annual Depreciation. It's the simplest method and commonly used for financial reporting.
What is MACRS depreciation?
MACRS (Modified Accelerated Cost Recovery System) is the tax depreciation method required by the IRS for most business assets. It front-loads deductions, giving you larger write-offs in the early years. Assets are assigned recovery periods (3, 5, 7, 10, 15, 20, 27.5, or 39 years) based on their type.
How many years do you depreciate business equipment?
Under MACRS, most business equipment falls into the 5-year or 7-year class. Computers and vehicles are typically 5-year property. Office furniture and fixtures are 7-year. Real estate uses 27.5 years (residential) or 39 years (commercial).
Can I deduct the full cost of an asset in year one?
Potentially. Section 179 lets you deduct the full cost of qualifying assets (up to annual limits) in the year of purchase. Bonus depreciation may also allow 100% first-year deductions. This calculator shows standard depreciation schedules — consult your tax advisor about Section 179 eligibility.
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