Machinery Depreciation Calculator

How is machinery depreciation calculated?

The straight-line method spreads the difference between the acquisition value and the residual value equally over the useful life, generating a constant depreciation charge each year.

The declining-balance method (2x coefficient) applies a fixed percentage to the previous year's book value, resulting in larger depreciation charges in the early years that decrease over time, often better reflecting the actual loss of value of many industrial assets.

The calculator shows the depreciation and book value for the selected year, along with a comparison table for year 1, half of the useful life, and the final year. These calculations are indicative only: always check the accounting and tax regulations applicable to your company.