Sum-of-the-Years'-Digits Depreciation Calculator (Accelerated Method)
Depreciation expense, accumulated depreciation and book value of an asset in any year using the sum-of-the-years'-digits method, next to the straight-line charge.
Results
The dashed line marks the value you entered.
What this tool does
The sum-of-the-years'-digits method writes off more in the early years: each year takes a fraction of the depreciable amount (cost minus salvage), with the numerator counting down from the life — for five years, 5/15, 4/15, 3/15, 2/15, 1/15, where 15 = 1+2+3+4+5. It fits assets that lose value or usefulness faster when new, such as vehicles and electronics. Which depreciation methods are acceptable for accounts or tax depends on the rules that apply to you, so use this to see the pattern and check with your accountant.
Formula
S = n(n+1) ÷ 2 · depreciation in year y = (cost − salvage) × (n − y + 1) ÷ S
Variables
| Symbol | Meaning | Unit |
|---|---|---|
c | Cost of the asset | — |
sv | Salvage (residual) value | — |
n | Useful life in years | years |
y | Year to calculate | — |
DE | Depreciation expense in that year | — |
AC | Accumulated depreciation at the end of that year | — |
BV | Book value at the end of that year | — |
SD | Sum of the years' digits | — |
SL | Straight-line charge per year for comparison | — |
Worked example
- Cost of the asset20,000
- Salvage (residual) value2000
- Useful life in years5 years
- Year to calculate2
- Depreciation expense in that year4800.00
- Accumulated depreciation at the end of that year10,800.00
- Book value at the end of that year9200.00
- Sum of the years' digits15
- Straight-line charge per year for comparison3600.00
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- Tax rates and rounding rules differ between countries and sometimes between regions. Use the rate that applies to your invoice.