Depreciation calculator

Introducing Excel's Depreciation Functions

Depreciation is the way that accountants spread the purchase cost of an asset over its useful life. Assets are by definition expensive and long-lived so it makes sense to allocate the cost over many years.

This matches the cost to the benefit provided to your business. While you can learn the formulas and definitions of each depreciation method, Excel makes it easy with the SLN, DB, DDB, SYD and VDB functions.

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Straight Line Depreciation and Beyond

Straight Line Depreciation is the rock star of depreciation methods and will be the one you use 99% of the time.

Monthly depreciation formula in excel template

Luckily, it is also the most simple to calculate. But it is important to know the other depreciation methods and how to calculate them. They are Declining Balance, Double Declining Balance, Sum of Years Digits and Variable Declining Balance.

To get started, download the example workbook using the button below and open the file up.

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Download the Depreciation Workbook

Getting Started

To calculate depreciation, you will always need to know three things:

• Purchase Price:
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