Depreciation Reducing Balance Calculator
A depreciation reducing balance calculator is a tool that calculates the value of an asset over time using a depreciation method where the asset's value decreases by a fixed percentage each year based on the remaining value.
Jan 15 2021
To use this simple depreciation calculator you need two values:
- Original cost of goods
- Annual depreciation rate, as a percentage
When your values are entered into the calculator, press the Calculate button. You will instantly be presented with annual depreciation amounts and the corresponding written down value. You will see that the amounts reduce each year because the depreciation amount is recalculated for each period using the written down value from the previous period.
This is in contrast to straight line depreciation, where the depreciation amounts are the same for each period.
Frequently Asked Questions
Have a question about this calculator? See our list of frequently asked questions below.
What is the reducing balance depreciation method?
The reducing balance method of depreciation produces smaller and smaller depreciation amounts in each period of the useful life of an asset.
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