DOUBLE-DECLINING BALANCE

Double-Declining Balance Depreciation Calculator

Apply twice the straight-line rate to beginning book value each full year, and stop so book value never falls below salvage.

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Twice the straight-line rate, applied to book value

Double-declining balance is an accelerated US book method. The annual rate is 2 ÷ useful life. Each full year multiplies beginning book value by that rate, then the charge is capped so book value does not fall below salvage. Straight-line spreads cost minus salvage evenly. This page matches Excel DDB without switching to straight-line when that amount would be larger, and it does not load MACRS percentages or a half-year convention.

DDB rate = 2 ÷ years
Year t expense = min(beginning book value × rate, beginning book value − salvage)
Book value = cost − accumulated depreciation

Example

A $10,000 machine with $1,000 salvage and a 5-year life uses a 40% rate. Year 1 depreciation is $4,000 and book value is $6,000. Year 2 is $2,400. By year 5 the cap leaves $296 so book value equals salvage. A $50,000 asset with $5,000 salvage and a 5-year life is $20,000 in year 1; year 5 is $1,480.

What this schedule leaves out

Useful life and the year to report must be whole numbers. Year 0 leaves book value equal to cost. Partial-year conventions, 150% declining balance, the optional switch to straight-line, Section 179, and IRS MACRS tables stay outside this full-year identity.

Frequently asked questions

Is this MACRS?

No. MACRS uses IRS recovery periods, a half-year or mid-quarter convention, and percentage tables. This page only applies 2 ÷ years to book value.

Can salvage be zero?

Yes. DDB keeps applying its declining rate, but the remaining book value may still be above $0 after the final useful-life period because this page does not force a final write-down or switch to straight-line.

What does year 0 mean?

No year has been charged yet. Depreciation this year is $0 and book value equals cost.

Does Excel switch to straight-line?

Excel DDB does not. Excel VDB can switch. This page follows DDB.

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