Fixed Asset Depreciation Calculator

Understanding Fixed Asset Depreciation

Fixed asset depreciation is a method of allocating the cost of a tangible asset over its useful life. It's an important concept in accounting that affects a company's balance sheet and income statement.

Key Depreciation Methods:

• Straight Line: Evenly spreads the asset's depreciation over its useful life.
• Declining Balance: Accelerates depreciation in the early years of an asset's life.
• Sum of Years: Another accelerated method that calculates depreciation based on the sum of the years' digits.