{"id":4945,"date":"2026-07-20T09:00:00","date_gmt":"2026-07-20T07:00:00","guid":{"rendered":"https:\/\/inventory-one.com\/?p=4945"},"modified":"2026-07-17T08:39:32","modified_gmt":"2026-07-17T06:39:32","slug":"calculate-depreciation","status":"publish","type":"post","link":"https:\/\/inventory-one.com\/en\/2026\/07\/20\/abschreibung-berechnen\/","title":{"rendered":"Calculating Depreciation: Straight-Line &amp; Declining Balance (with Example)"},"content":{"rendered":"<p>The <strong>Calculate Depreciation<\/strong> It's easy with the right formulas. Here, you'll learn step by step how to calculate straight-line and declining-balance depreciation\u2014including a sample calculation and a <strong>Free Excel Depreciation Calculator<\/strong> Download here.<\/p>\n<div style=\"display:flex;flex-wrap:wrap;gap:12px;margin:24px 0\"><a href=\"https:\/\/inventory-one.com\/wp-content\/uploads\/2026\/07\/Abschreibungsrechner.xlsx\" download style=\"display:inline-block;background:#19BEA0;color:#ffffff;font-weight:700;text-decoration:none;padding:14px 24px;border-radius:8px\">\u2b07\ufe0f Free Depreciation Calculator (Excel)<\/a><\/div>\n<h2>Key Points at a Glance<\/h2>\n<ul>\n<li><strong>Straight-line depreciation<\/strong> = Acquisition cost \u00f7 useful life.<\/li>\n<li><strong>Declining-Balance Depreciation<\/strong> = fixed percentage (up to 3\u00d7 on a linear basis, max. 30 %) of the remaining book value.<\/li>\n<li>In the year of acquisition, <strong>to the exact month<\/strong> (on a pro rata temporis basis).<\/li>\n<li>Our <strong>Excel Calculator<\/strong> automatically generates the entire table.<\/li>\n<\/ul>\n<h2>Calculate Straight-Line Depreciation<\/h2>\n<p>The formula is: <strong>Annual Depreciation = Acquisition Cost \u00f7 Useful Life<\/strong>.<\/p>\n<p><strong>Example:<\/strong> A machine costs \u20ac10,000 net and has a useful life of 5 years. Annual depreciation = \u20ac10,000 \u00f7 5 = <strong>2.000 \u20ac<\/strong>. After five years, the machine is fully depreciated.<\/p>\n<h2>Calculate Declining-Balance Depreciation<\/h2>\n<p>Under the declining-balance depreciation method, a fixed percentage is applied to the respective remaining book value. Currently permitted: up to <strong>Three times the linear depreciation rate, up to 30 %<\/strong> (for purchases made between July 1, 2025, and December 31, 2027).<\/p>\n<p><strong>Example<\/strong> (10.000 \u20ac, 30 %):<\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Year<\/th>\n<th>Declining-Balance Depreciation<\/th>\n<th>Net book value<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1<\/td>\n<td>3.000 \u20ac<\/td>\n<td>7.000 \u20ac<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>2.100 \u20ac<\/td>\n<td>4.900 \u20ac<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>1.633 \u20ac<\/td>\n<td>3.267 \u20ac<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>Starting in the year when the remaining straight-line depreciation is higher, it makes sense to switch to the straight-line method\u2014this ensures that the asset is fully depreciated. That is exactly what our calculator does automatically.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/inventory-one.com\/wp-content\/uploads\/2026\/07\/infografik-afa-vergleich.png\" alt=\"Comparison of straight-line and declining-balance depreciation over five years for 10,000 euros\" \/><figcaption class=\"wp-element-caption\">Straight-line vs. declining-balance depreciation: Example: \u20ac10,000, useful life of 5 years.<\/figcaption><\/figure>\n<h2>Depreciation in the Year of Acquisition (Pro Rata Temporis)<\/h2>\n<p>In the year of purchase, depreciation is calculated on a pro-rata basis\u2014one-twelfth of the annual depreciation for each month or portion thereof. So, if you make a purchase in October, you depreciate 3\/12 in the first year.<\/p>\n<div style=\"display:flex;flex-wrap:wrap;gap:12px;margin:24px 0\"><a href=\"https:\/\/inventory-one.com\/wp-content\/uploads\/2026\/07\/Abschreibungsrechner.xlsx\" download style=\"display:inline-block;background:#19BEA0;color:#ffffff;font-weight:700;text-decoration:none;padding:14px 24px;border-radius:8px\">\u2b07\ufe0f Download the Depreciation Calculator (Excel)<\/a><\/div>\n<h2>Accurately Tracking Assets\u2014The Foundation of Depreciation<\/h2>\n<p>Any depreciation calculation requires that you know which assets you own, how much they cost, and when they were purchased. This is exactly what a well-maintained fixed asset or inventory list provides. With <a href=\"https:\/\/inventory-one.com\/en\/inventory-management\/\">Inventory ONE<\/a> Record each fixed asset using <strong>Cost, Date, and Useful Life<\/strong> via scan\u2014the perfect basis for your depreciation. Learn more on our pages about <a href=\"https:\/\/inventory-one.com\/en\/inventory-management\/\">Inventory management<\/a> and to the <a href=\"https:\/\/inventory-one.com\/en\/inventory-system\/\">Inventory system<\/a>.<\/p>\n<h2>Frequently Asked Questions About Depreciation Calculations (FAQ)<\/h2>\n<h3>How do you calculate straight-line depreciation?<\/h3>\n<p>The acquisition cost divided by the useful life yields the constant annual depreciation amount.<\/p>\n<h3>How do you calculate declining-balance depreciation?<\/h3>\n<p>A fixed percentage (currently up to 3\u00d7 on a straight-line basis, max. 30 %) is applied annually to the remaining book value. The amounts decrease from year to year.<\/p>\n<h3>What does \"pro rata temporis\" mean?<\/h3>\n<p>In the year of acquisition, depreciation is calculated on a monthly basis: one-twelfth of the annual depreciation per month or portion thereof.<\/p>\n<h3>Is there a free depreciation calculator?<\/h3>\n<p>Yes, you can download our Excel depreciation calculator above for free\u2014it automatically generates straight-line and declining-balance depreciation tables.<\/p>\n<p><em>This article is intended for general informational purposes only and is not a substitute for tax advice. The regulations mentioned are current as of 2026; the applicable tax regulations in effect at any given time shall prevail. Please consult your tax advisor regarding your specific situation.<\/em><\/p>\n<p><!--AFA-NAV--><\/p>\n<h2>More Articles on Depreciation &amp; Fixed Assets<\/h2>\n<ul>\n<li><a href=\"https:\/\/inventory-one.com\/en\/?p=4943\">Depreciation (AfA) \u2013 Basics &amp; Methods<\/a><\/li>\n<li><a href=\"https:\/\/inventory-one.com\/en\/?p=4944\">Depreciation Schedule \u2013 Find the Useful Life<\/a><\/li>\n<li><strong>Calculate Depreciation \u2013 Calculator &amp; Examples<\/strong> (this article)<\/li>\n<li><a href=\"https:\/\/inventory-one.com\/en\/?p=4879\">Low-Value Assets (LVA)<\/a><\/li>\n<li><a href=\"https:\/\/inventory-one.com\/en\/?p=4881\">Maintain an asset register<\/a><\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>Calculate Depreciation: Straight-line and Declining-Balance Depreciation with Formulas, a Sample Calculation, and a Free Excel Depreciation Calculator Available for Download.<\/p>","protected":false},"author":6,"featured_media":4957,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":["post-4945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buchhaltung-anlagen"],"acf":[],"_links":{"self":[{"href":"https:\/\/inventory-one.com\/en\/wp-json\/wp\/v2\/posts\/4945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inventory-one.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/inventory-one.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/inventory-one.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/inventory-one.com\/en\/wp-json\/wp\/v2\/comments?post=4945"}],"version-history":[{"count":2,"href":"https:\/\/inventory-one.com\/en\/wp-json\/wp\/v2\/posts\/4945\/revisions"}],"predecessor-version":[{"id":4954,"href":"https:\/\/inventory-one.com\/en\/wp-json\/wp\/v2\/posts\/4945\/revisions\/4954"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/inventory-one.com\/en\/wp-json\/wp\/v2\/media\/4957"}],"wp:attachment":[{"href":"https:\/\/inventory-one.com\/en\/wp-json\/wp\/v2\/media?parent=4945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/inventory-one.com\/en\/wp-json\/wp\/v2\/categories?post=4945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/inventory-one.com\/en\/wp-json\/wp\/v2\/tags?post=4945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}