Double Declining Depreciation Calculator
Answers the Question
How much is an item worth, if we assume it loses value very rapidly?
Calculator for Double Declining Depreciation
What Is the Double Declining Depreciation?
A full description can be found in the guide to depreciation
Why Is it Important?
- This method of depreciation allows users to estimate the value of an item and receive a number that is best for tax purposes.
Formula(s) to Calculate Double Declining Depreciation
- DEPRECIATION PERCENTAGE = 1 - (SCRAP VALUE / PURCHASE PRICE) ^ (1 / LIFESPAN IN YEARS)
- Attempting to discover the depreciation rate independently for each year, rather than just once.
- Using rounded, rather than exact numbers. This leads to increasing error as the years progress.