Interactive Calculator & Side-by-Side Analysis
💻 Interactive Depreciation Calculator
Enter your asset details below to instantly compare all five depreciation methods. See real-time calculations and visualize the differences!
Year Depreciation Results
Straight-Line
$0
Sum of Years
$0
Declining Balance
$0
Double-Declining
$0
Variable Declining
$0
📊 Visual Comparison
📋 Complete Method Comparison
| Method | Excel Function | Pattern | Best For | Tax Benefit |
|---|---|---|---|---|
| Straight-Line | =SLN(cost, salvage, life) |
Equal amounts each year | Buildings, furniture, stable assets | Evenly distributed |
| Sum of Years’ Digits | =SYD(cost, salvage, life, per) |
Decreasing, moderate acceleration | Equipment, moderate obsolescence | Early benefits |
| Declining Balance | =DB(cost, salvage, life, period) |
Fixed percentage decline | Machinery, manufacturing assets | Accelerated early |
| Double-Declining | =DDB(cost, salvage, life, period) |
200% declining rate (most aggressive) | Technology, vehicles, rapid obsolescence | Maximum early benefits |
| Variable Declining | =VDB(cost, salvage, life, start, end) |
Flexible, can switch methods | Complex scenarios, partial periods | Customizable timing |
🎯 How to Choose the Right Method
🔄 Step-by-Step Decision Guide
Step 1: Identify your asset type. Is it technology, equipment, buildings, or vehicles?
Step 2: Consider the usage pattern. Does it lose value quickly early on or consistently over time?
Step 3: Review tax implications. Do you need larger deductions in early years?
Step 4: Check accounting standards. What does GAAP, IFRS, or IRS require?
Step 5: Match method to reality. Choose the method that best reflects actual value decline.
Step 6: Stay consistent. Use the same method throughout the asset’s life unless circumstances change.
Step 7: Document your choice. Record the reasoning for audit and compliance purposes.
🎓 Test Your Knowledge
Which depreciation method provides the HIGHEST depreciation expense in Year 1?
Straight-Line (SLN)
Sum of Years’ Digits (SYD)
Double-Declining Balance (DDB)
Declining Balance (DB)
Which method is BEST for an asset with consistent usage and wear?
Straight-Line (SLN)
Double-Declining Balance (DDB)
Sum of Years’ Digits (SYD)
Variable Declining Balance (VDB)
Your company purchased a laptop for $2,000. It will be worth $200 in 4 years. Which Excel function gives equal annual depreciation?
=DDB(2000, 200, 4, 1)
=SLN(2000, 200, 4)
=SYD(2000, 200, 4, 1)
=DB(2000, 200, 4, 1)
Which method allows you to switch between declining balance and straight-line?
DDB (Double-Declining Balance)
SYD (Sum of Years’ Digits)
VDB (Variable Declining Balance)
DB (Declining Balance)