DDB Depreciation Calculator
Use this Double Declining Balance Depreciation Calculator to quickly determine the annual depreciation expense and book value of an asset over its useful life. It's a faster depreciation method often used for tax purposes or for assets that lose value quickly in their early years.
The initial purchase price of the asset.
The estimated value of the asset at the end of its useful life.
The number of years the asset is expected to be used.
Use this Double Declining Balance Depreciation Calculator to quickly determine the annual depreciation expense and book value of an asset over its useful life. It's a faster depreciation method often used for tax purposes or for assets that lose value quickly in their early years.
Depreciation Expense = (Book Value at Beginning of Year) × (2 / Useful Life) Book Value = Initial Cost - Accumulated Depreciation
An office buys new equipment for $10,000. It has an estimated salvage value of $1,000 and a useful life of 5 years. Using the double declining balance method, the depreciation rate is (2 / 5) = 40% per year. The calculator will show the depreciation schedule for each year until the book value reaches the salvage value.
The Double Declining Balance (DDB) method is an accelerated depreciation method that records larger depreciation expenses in the earlier years of an asset's useful life and smaller expenses in later years. It's called 'double' because it uses twice the straight-line depreciation rate.
For the DDB method, the depreciation rate is calculated as (2 / Useful Life in Years). For example, if an asset has a 5-year useful life, the rate would be (2 / 5) = 0.40 or 40%.
No, an asset cannot depreciate below its salvage value. The depreciation expense in any given year is limited so that the asset's book value does not fall below the estimated salvage value. Our calculator automatically adjusts for this.
© 2025-2026 PromathTools. All rights reserved.
Built by KruskalCode – SaaS & Automation Experts · EverydayDevTools
