Depreciation Calculator

Calculate asset depreciation using different methods and see the impact on book value and tax savings.

Straight-Line Depreciation

The simplest depreciation method — spreads the cost evenly over the asset's useful life. Commonly used for accounting purposes and assets that lose value steadily over time.

Annual Depreciation
$0
per year over 5 years

Depreciation Summary

Depreciable Amount$90,000
Annual Depreciation$18,000
Monthly Depreciation$1,500
Annual Tax Savings$4,770

Depreciation Schedule

Total Impact

$90K
Total Depreciation
$24K
Total Tax Savings
20%
Annual Rate
$10K
End Book Value

Annual Depreciation = (Cost - Salvage Value) ÷ Useful Life

This method allocates equal depreciation expense each year, making it easy to budget and forecast.

Best for: Buildings, furniture, office equipment, and assets that provide consistent value over time.

Note: For Canadian tax purposes, you must use CCA, not straight-line depreciation.

*All amounts in Canadian dollars. Estimates only—this is not a financing offer or approval. Taxes (GST/PST/HST) NOT included.

Use this depreciation calculator to estimate how an asset’s value is expensed over time. Compare straight-line depreciation, declining-balance depreciation, and Capital Cost Allowance, which is Canada’s tax depreciation method. This tool helps with budgeting, planning, and estimating how depreciation can affect taxable income.

What you can do on this page

  • Calculate straight-line depreciation by useful life and salvage value
  • Model declining-balance depreciation using a percentage rate
  • Estimate Capital Cost Allowance using common Canada asset classes
  • View schedules by year with book value and Undepreciated Capital Cost
  • Estimate tax savings using a chosen business tax rate

FAQs

Everything you need to know about how this calculator works, what the results mean, and what is included. If you need a quote or help reviewing your numbers, feel free to contact our credit analysts.
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What is depreciation?
Depreciation is an accounting method that spreads the cost of an asset over its useful life as it is used in the business.
What is the difference between straight-line and declining-balance depreciation?
Straight line uses the same amount each year. Declining-balance takes more depreciation in earlier years and less later.
What is Capital Cost Allowance in Canada?
Capital Cost Allowance is the Canada Revenue Agency method for tax depreciation, based on asset classes and rates applied to Undepreciated Capital Cost.
What is the half-year rule?
In many cases, only half of the normal Capital Cost Allowance can be claimed in the year the asset is acquired.
Which Capital Cost Allowance class should I pick?
It depends on the asset type and tax rules. This calculator includes common classes, but you should confirm the correct class with an accountant.
Does depreciation reduce taxes?
Depreciation can reduce taxable income, which may reduce taxes owed. Actual outcomes depend on business income and tax treatment. Not tax advice.

Disclaimer:
This Truck & Heavy Equipment Financing Calculator is provided for informational purposes only. It offers estimates based on the information provided and current average rates, which may vary depending on individual creditworthiness, lender policies, market conditions, and other factors. This calculator does not constitute a loan offer, lease offer, or approval from Mehmi Financial Group or its affiliates. Please contact Mehmi Financial Group directly to confirm current rates, terms, and actual financing availability. Mehmi Financial Group accepts no liability for decisions made using this calculator.

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