Compare straight-line, declining balance, double declining balance, fixed declining balance, sum-of-years’ digits, units of production, activity method, and variable declining balance for the same asset.
For usage-based methods (units of production & activity), the comparator assumes even usage each year. Switch to the Schedule tab for a free per-year usage schedule.
| Method | Year-1 depreciation | Total depreciation | Ending book value |
|---|
Example for 5-year life: 20000, 20000, 20000, 20000, 10000
| Year | Depreciation | Accumulated | Book value |
|---|
Examples use a $10,000 asset, $1,000 salvage value, 5-year life (UOP: 90,000 total units with schedule 20000/20000/20000/20000/10000; activity: 10,000 total hours with schedule 2000/2000/2000/2000/1000; DB uses 25% rate; VDB factor 2).
The same charge every year. Suited to assets that wear out with time.
Example: year-1 = $1,800.00, year-5 = $1,800.00.
You set the rate yourself (e.g. 25%). Depreciation is large early then shrinks; ending book value may stay above salvage value.
Example: year-1 = $2,500.00, year-5 = $791.02.
A declining balance version with twice the straight-line rate, without switching methods mid-way.
Example: year-1 = $4,000.00, year-5 = $296.00.
A fixed rate computed so book value reaches salvage exactly at end of life — no manual capping needed.
Example: year-1 = $3,690.43, year-5 = $584.89.
A declining fraction each year (for 5 years: 5/15, 4/15, 3/15, 2/15, 1/15). Accelerated early like DDB but always ends exactly at salvage value.
Example: year-1 = $3,000.00, year-5 = $600.00.
Based on actual usage, not time. Suited to production machinery.
Example: year-1 = $2,000.00, year-5 = $1,000.00.
Like UOP but measured in activity hours — suited to assets that wear per operating hour.
Example: year-1 = $1,800.00, year-5 = $900.00.
Declining balance that automatically switches to straight-line once straight-line gives the larger number — never smaller than straight-line in the final years.
Example: year-1 = $4,000.00, year-5 = $296.00.
It depends on the method: straight-line $1,800.00 per year, double declining balance $4,000.00 in the first year, sum-of-years’ digits $3,000.00 in the first year, and units of production $2,000.00 for 20,000 units of 90,000 total units. Try the Comparison tab above.
DDB uses a fixed 2 ÷ life rate without switching methods. VDB uses a factor ÷ life rate but switches to straight-line over the remaining life once straight-line is larger.
Units of production (or the hour-based activity method) follows actual usage — suited to machinery or operational vehicles. Straight-line follows time — suited to assets that wear with age like buildings.
Total depreciation must not exceed acquisition cost minus salvage value. This calculator caps each year so book value never goes below salvage value.
A method with fixed rate = 1 − (salvage ÷ cost)^(1 ÷ life), computed so book value reaches salvage exactly at end of life — e.g. about 36.90% per year for the example on this page.
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