Free small business calculator

Double Declining Balance Depreciation Calculator

Calculate double declining balance depreciation from asset cost, salvage value, and useful life. See the DDB rate, first-year depreciation, ending book value, and straight-line comparison.

By the HustleFin Editorial TeamUpdated 2026-06-29Editorial policy

Inputs

Enter the minimum numbers needed to get a result.

Asset purchase costOriginal cost before depreciation.

Salvage valueExpected value at the end of useful life. DDB stops once book value reaches this floor.

Useful lifeExpected number of years the asset will be used.

years

Results

Updated live as you type.

DDB depreciation rate40%

First-year depreciation$4,000

Ending book value after year 1$6,000

Straight-line first-year comparison$1,800

Last updated

2026-06-29

Method

Planning estimate

Scope

Single item / single scope

Planning estimate only. It does not include taxes, overhead allocation, depreciation, discounts, or other business-specific adjustments.

Benchmark context

Quick answer

Double declining balance depreciation is an accelerated method that applies twice the straight-line rate to an asset's book value, producing larger depreciation in early years and smaller deductions later.

Formula and example

DDB rate = 2 / Useful Life; Year 1 depreciation = Asset Cost x DDB rate, capped so book value does not fall below salvage value

A $10,000 asset with a $1,000 salvage value and 5-year life has a 40% DDB rate. Year 1 depreciation is $4,000 and ending book value is $6,000.

Related tools

Depreciation Calculator

Compare annual depreciation across straight-line, double declining balance, and sum-of-years methods.

Depreciation Rate Calculator

Find annual depreciation rate and expense from cost, salvage value, and useful life.

Methodology & assumptions

Last updated: 2026-06-29

Calculation method

Uses the double declining balance method: twice the straight-line rate applied to beginning book value. This page shows the first-year result and caps depreciation at the salvage value floor. It is for book/planning depreciation, not IRS MACRS tax tables.

Data sources

Uses the numbers you enter and standard small-business finance formulas. Benchmark comparisons use HustleFin industry benchmark pages where available.

Limitations

Only calculates the first year of DDB depreciation. It does not switch to straight-line in later years, apply half-year conventions, or calculate MACRS, Section 179, or bonus depreciation.

Input definitions

Asset purchase cost: Original cost before depreciation.
Salvage value: Expected value at the end of useful life. DDB stops once book value reaches this floor.
Useful life: Expected number of years the asset will be used.

Frequently asked questions

What is double declining balance depreciation?+

Double declining balance, or DDB, is an accelerated depreciation method. It applies twice the straight-line depreciation rate to the asset's beginning book value each year. A 5-year asset has a 20% straight-line rate, so DDB uses 40% in year one.

What is the double declining balance formula?+

DDB rate = 2 ÷ Useful Life. Year 1 depreciation = Asset Cost × DDB rate. In later years, apply the same rate to the remaining book value, stopping when book value reaches salvage value.

When should I use DDB instead of straight-line depreciation?+

Use DDB when an asset loses value faster in early years, such as equipment, computers, vehicles, or technology. Use straight-line when the asset provides value evenly over time and you want stable annual expense.

Is double declining balance the same as MACRS?+

No. DDB is an accounting depreciation method. MACRS is the IRS tax depreciation system with recovery classes, conventions, and tables. This calculator does not replace tax software or IRS Publication 946.