📉Depreciation Formulas

Double-Declining Balance

2 × (1 ÷ Useful Life) × Book Value at Beginning of Year = Depreciation

What It Means

More expense early, less later. Accelerated method.

✓Best for: Tech, vehicles—assets that lose value quickly

Useful Life:5 years

Beginning Book Value:$50,000

2 × (1 ÷ 5) × $50,000 = 2 × 0.20 × $50,000

Year 1 Depreciation = $20,000

(Asset Cost - Salvage Value) ÷ Useful Life = Annual Depreciation

(Asset Cost - Salvage Value) ÷ Total Estimated Units × Units This Period = Depreciation

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