MACRS Depreciation Calculator
Calculate IRS tax depreciation using MACRS with official Publication 946 rates. See the full recovery schedule and estimated tax savings.
Original cost of the asset (before any deductions)
Computers, office equipment, automobiles, trucks, R&D equipment
General Depreciation System (200% DB switching to SL) — most common
Enter your marginal tax rate to see estimated tax savings per year
Year 1 Depreciation
$3,000
20.0% recovered in Year 1
Book Value Over Time
GDS Schedule — 5-Year Property
| Year | Rate | Depreciation | Accumulated | Book Value |
|---|---|---|---|---|
| 1 | 20.00% | $3,000 | $3,000 | $12,000 |
| 2 | 32.00% | $4,800 | $7,800 | $7,200 |
| 3 | 19.20% | $2,880 | $10,680 | $4,320 |
| 4 | 11.52% | $1,728 | $12,408 | $2,592 |
| 5 | 11.52% | $1,728 | $14,136 | $864 |
| 6 | 5.76% | $864 | $15,000 | $0 |
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Start tracking freeUnderstanding MACRS Depreciation
MACRS (Modified Accelerated Cost Recovery System) is the standard method for depreciating business property on U.S. tax returns. It assigns each asset to a property class that determines the recovery period and depreciation rates.
- GDS (General Depreciation System) uses 200% declining balance switching to straight-line. This is the default and gives you faster deductions.
- ADS (Alternative Depreciation System) uses straight-line over a longer period. Required for listed property used 50% or less for business, and for certain international assets.
- Half-year convention: MACRS treats all property as placed in service at the midpoint of the year, so Year 1 and the final year each get a half-year of depreciation.
For book depreciation methods (straight-line, declining balance, etc.), see our Equipment Depreciation Calculator.
Frequently Asked Questions
Which property class should I choose?
The IRS assigns each type of property to a class. The most common are: 5-year (computers, vehicles, office equipment) and 7-year (office furniture, fixtures, most machinery). See IRS Publication 946 for the complete list.
Why does a 5-year property have 6 years of depreciation?
Because of the half-year convention. MACRS assumes the asset was placed in service at the midpoint of Year 1, so you get a half-year of depreciation in Year 1 and the remaining half in Year 6.
GDS or ADS — which should I use?
Most businesses should use GDS — it gives you faster deductions. ADS is required in specific situations (listed property used ≤50% for business, tax-exempt property, property used outside the U.S.). If you're unsure, consult your tax advisor.
What about Section 179 and bonus depreciation?
Section 179 and bonus depreciation allow you to deduct more in Year 1 (potentially the full cost). This calculator shows standard MACRS schedules without these elections. Consult a tax professional to determine if Section 179 or bonus depreciation applies to your situation.
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