Fixed Declining Balance Depreciation Calculator

Calculate depreciation using the fixed declining balance method with customizable rates

Tip: This calculator lets you set your own depreciation rate, making it usable for any accounting standards or future years without updates.

Asset Information

Asset Cost ($)

Salvage Value ($)

Depreciation Parameters

Useful Life (Years)

Depreciation Rate (%)

Start Year

Calculation Options

Automatically switch to straight-line when beneficial

Apply half-year convention

Fixed Declining Balance Depreciation Explained

How It Works

A fixed percentage is applied to the remaining book value each year
Higher depreciation in early years, lower in later years
Never goes below salvage value
Option to switch to straight-line when it becomes more beneficial

When to Use

Assets that lose more value in early years (vehicles, technology)
When matching expenses to revenue patterns
Tax advantages in some jurisdictions
When asset productivity declines over time

Frequently Asked Questions

How is the fixed declining balance rate determined?

The rate is typically a multiple of the straight-line rate (e.g., 1.5x or 2x). For example, a 5-year asset with straight-line 20% might use 40% for double declining balance. You can enter any rate you need in this calculator.

Should I switch to straight-line depreciation?

Switching to straight-line when it results in higher depreciation can help maximize deductions. Our calculator automatically makes this switch when beneficial if you select that option.

What is the half-year convention?

This assumes assets are placed in service mid-year, so the first year's depreciation is halved. It's commonly used for tax purposes in some countries.

How does salvage value affect the calculation?

The asset will never depreciate below its salvage value. The calculator automatically stops depreciating once this value is reached.

Can I use this for tax reporting?

While this calculator provides accurate depreciation schedules, always consult with a tax professional for official reporting as rules vary by jurisdiction.