Monthly Reducing Balance Depreciation Calculator
Let’s assume we have an asset with an initial value of $10,000, a useful life of 5 years, and a salvage value of $1,000.
| Month | Beginning Balance | Depreciation | Ending Balance |
|---|---|---|---|
| 1 | $10,000 | $150 | $9,850 |
| 2 | $9,850 | $148.25 | $9,701.75 |
| 3 | $9,701.75 | $145.53 | $9,556.22 |
| 4 | $9,556.22 | $143.34 | $9,412.88 |
| 5 | $9,412.88 | $141.19 | $9,271.69 |
| 6 | $9,271.69 | $139.08 | $9,132.61 |
| 7 | $9,132.61 | $137.00 | $8,995.61 |
| 8 | $8,995.61 | $134.93 | $8,860.68 |
| 9 | $8,860.68 | $132.91 | $8,727.77 |
| 10 | $8,727.77 | $130.92 | $8,596.85 |
| 11 | $8,596.85 | $129.15 | $8,467.70 |
| 12 | $8,467.70 | $126.51 | $8,341.19 |
This table shows the monthly depreciation of the asset over the course of one year. The depreciation amount is calculated using the reducing balance method, where each month’s depreciation is based on the remaining balance of the asset at the beginning of that month.