Calculate asset depreciation using straight-line, declining balance or sum-of-years digits — with a year-by-year table.
Depreciation is the systematic allocation of an asset's cost over its useful life. When a company buys a machine for R$ 100.000 and expects it to last ten years with a salvage value of R$ 10.000, the depreciable base is R$ 90.000. How that base is spread across the ten years depends on the method, and the choice affects both the income statement and the tax bill — more depreciation in the early years means lower taxable profit early on.
The straight-line method divides the depreciable base equally: R$ 9.000 every year for ten years. The declining balance method applies a fixed rate (commonly double the straight-line rate) to the current book value, producing large charges at the start that shrink each year. The sum-of-years digits method assigns a fraction of the base to each year based on the remaining life divided by the sum of all the years — the first year gets 10/55, the second 9/55, and so on. Both accelerated methods reflect the economic reality that most assets lose value faster when they are new.
This calculator shows the full schedule: year, annual depreciation, accumulated depreciation and book value. The book value never drops below the salvage value, which is a floor built into every method. The tool does not know your tax code — the useful lives and salvage values used for tax purposes are set by regulation (in Brazil, by RFB Instrução Normativa 1.700/2017), and they may differ from the economic life. Use the table to compare methods and plug the figures into your accounting — the calculation itself runs in your browser with no server.
Straight-line: annual = (cost − salvage) / life. Declining balance: annual = book value × (2 / life), floored at salvage. Sum-of-years: annual = (cost − salvage) × (remaining life / sum of digits), where sum = life × (life + 1) / 2.
Straight-line is the simplest and the most common for financial reporting. The declining balance and sum-of-years methods front-load the expense, which is better for tax deferral and for assets that lose value quickly, like technology equipment.
The estimated value of the asset at the end of its useful life — what you could sell it for as scrap or used equipment. Some assets have zero salvage value.
No — you enter them. In Brazil, the RFB publishes standard rates (e.g. 10% per year for vehicles = 10-year life). This tool calculates but does not prescribe.
It gives you the numbers, but the method and the useful life must follow your tax authority's rules. Consult an accountant for the official treatment.
No. The entire calculation runs in JavaScript on your device.
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