| Asset Cost | Salvage Value | Useful Life | Target Year | SYD | Year 2 Depreciation | Accumulated Through Year 2 | Ending Book Value After Year 2 |
|---|---|---|---|---|---|---|---|
| $12,000.00 | $2,000.00 | 5 years | 2 | 15 | $2,666.67 | $6,000.00 | $6,000.00 |
This example uses a depreciable base of $10,000. The year two fraction is 4/15, so year two depreciation equals $10,000 × 4/15.
Depreciable Base = Asset Cost − Salvage Value
SYD = n(n + 1) / 2
Depreciation in Year k = (Remaining Life at Start of Year k / SYD) × Depreciable Base
Ending Book Value = Asset Cost − Accumulated Depreciation
The method gives a larger depreciation expense in earlier years and smaller expense in later years. That makes it a common accelerated depreciation approach.
- Enter the asset name if you want a labeled schedule.
- Provide the original asset cost.
- Enter the salvage value expected at the end of the asset life.
- Set the useful life in whole years.
- Choose the target year you want highlighted in the result summary.
- Enter the start year for cleaner schedule labels.
- Set a currency symbol and decimal precision.
- Press Calculate Now to show the result below the header and above the form.
- Use the CSV and PDF buttons to export the schedule.
- Review the Plotly chart to compare depreciation trends over time.
1) What is the sum of the years digits method?
It is an accelerated depreciation method. Higher expense is recorded in early years and lower expense is recorded later. The method uses a fraction based on the asset’s remaining life and the sum of all life-year digits.
2) How do you calculate the sum of the years digits?
Use the formula n(n + 1) / 2, where n is the useful life in years. For a five-year asset, the sum is 5 × 6 / 2 = 15.
3) Why does depreciation decrease every year?
Each year uses a smaller remaining-life numerator. Because the denominator stays fixed, the annual fraction declines. That reduces yearly depreciation while accumulated depreciation keeps rising.
4) Can salvage value be zero?
Yes. When salvage value is zero, the full asset cost becomes the depreciable base. The schedule still follows the same SYD fractions across the useful life.
5) What happens if salvage value equals asset cost?
The depreciable base becomes zero. In that case, yearly depreciation is zero for every year, and the book value stays equal to the original cost throughout the schedule.
6) Which year has the highest depreciation?
Year one has the highest depreciation because it uses the largest remaining-life numerator. Every later year uses a smaller numerator, so the expense becomes lower over time.
7) Is this the same as straight-line depreciation?
No. Straight-line depreciation spreads the depreciable base evenly across all years. The sum of the years digits method front-loads the expense, so early-year depreciation is higher.
8) Can I export the depreciation schedule?
Yes. This page includes CSV and PDF export buttons. After calculating, you can download a clean summary and the full annual depreciation schedule for reporting or review.