Accounting Share · Depreciation & assets
Sum-of-Years-Digits Depreciation Calculator
Allocate more depreciation to earlier years using declining fractions of the same depreciable amount. The denominator is the sum of the useful-life year numbers.
The interactive calculator requires JavaScript. The formula and worked example below remain available.
01 / Enter your figures
Make the numbers yours.
Use one currency and consistent time periods. Amounts are shown in your input currency units; no currency conversion is performed.
02 / See the working
Your calculation
Enter your figures, then choose Calculate. Or load the worked example.
03 / Understand the method
Formula and method
Annual depreciation = Remaining life at start of year ÷ Sum of years × Depreciable amount
Allocate more depreciation to earlier years using declining fractions of the same depreciable amount. The denominator is the sum of the useful-life year numbers.
How to use this calculator
- Collect the figures for the same entity, currency and reporting period.
- Enter each input using its label and unit. For percentages, enter 15 to mean 15%.
- Choose Calculate, inspect the breakdown and compare the result with your assumptions.
- Change one input to explore a scenario. Recalculate after edits; display rounding does not round the underlying calculation.
Inputs at a glance
- Asset cost: A nonnegative numeric input in the units specified by the label.
- Residual value: A nonnegative numeric input in the units specified by the label.
- Useful life in full years: A nonnegative numeric input in the units specified by the label.
Worked example
Follow one calculation.
- Asset cost
- 12000
- Residual value
- 2000
- Useful life in full years
- 5
- Calculated result
- 3,333.3333
Load this example in the interactive form to inspect the intermediate amounts and the full schedule.
Assumptions and interpretation
This is a full-year book-depreciation schedule. The selected method should reflect the pattern of consumption rather than a desired profit outcome.
The output is a model based on the figures entered. Check source records and use the accounting or contractual definitions relevant to your task before relying on a result.
Questions about this tool
What does the sum-of-years-digits depreciation calculation measure?
Allocate more depreciation to earlier years using declining fractions of the same depreciable amount. The denominator is the sum of the useful-life year numbers.
Which assumptions can change the result?
This is a full-year book-depreciation schedule. The selected method should reflect the pattern of consumption rather than a desired profit outcome.
Why can displayed totals differ slightly from my spreadsheet?
Calculations use the unrounded input values. Only the display is rounded. Use four or six decimal places to inspect small differences, and check the timing, sign conventions and rounding policy in your spreadsheet.
Reference and further learning
Financial accounting study reference. These original learning examples apply the displayed formula; the reference does not certify or endorse this calculator.
Look up an accounting term · Practise with accounting questions
Formula and worked example checked 4 November 2026. Calculations run in your browser without sending the entered figures to Accounting Share. Report a calculation issue with the tool name, example inputs and expected result; avoid sharing confidential records.
