Frequently Asked Questions
What is depreciation?
Depreciation is an accounting method used to allocate the cost of a tangible or physical asset over its useful life or life expectancy. It represents how much of an asset's value has been used up.
What is the Straight Line method?
The Straight Line method is the simplest and most common way to calculate depreciation. It reduces the value of an asset by the same amount each year over its useful life. Formula: (Cost - Salvage Value) / Useful Life.
What is the Double Declining Balance method?
This is an accelerated depreciation method that records larger depreciation expenses during the earlier years of an asset's life and smaller ones in later years. It's often used for assets that lose value quickly, like computers or vehicles.
What is the Sum of Years' Digits method?
Another accelerated method that applies a decreasing fraction to the depreciable base (Cost - Salvage Value) each year. The fraction's denominator is the sum of the years of the asset's useful life.
What is Salvage Value?
Salvage value (or residual value) is the estimated amount that an asset will be worth at the end of its useful life. It's the amount you expect to sell it for or its scrap value.
What is Useful Life?
Useful life is an estimate of the number of years an asset is likely to remain in service for the purpose of cost-effective revenue generation.
Is this calculator free to use?
Yes, the Depreciation Calculator by Dapplesoft is completely free to use for both personal and commercial purposes. There are no hidden fees or subscriptions.
Can I export the depreciation schedule?
Yes, you can easily export your calculated depreciation schedule as a high-quality PNG image or a PDF document for your records or to share with your accountant.
What is Book Value?
Book value is the value of an asset according to its balance sheet account balance. It is calculated by taking the original cost of the asset and subtracting its accumulated depreciation.
How do I remove the Dapplesoft branding from exports?
In the calculator input section, there is a checkbox labeled 'Include Dapplesoft Branding on Export'. Simply uncheck this box before clicking the download buttons to remove the branding.