How it works
Depreciation for year y = (cost−residual) × (life−y+1) / [life(life+1)/2].
Input definitions
- Asset cost
- Enter the value in the labeled unit.
- Residual value
- Enter the value in the labeled unit.
- Useful life in whole years
- Enter the value in the labeled unit.
- Year number
- Enter the value in the labeled unit.
A worked example
- Asset cost
- 12000
- Residual value
- 2000
- Useful life in whole years
- 4
- Year number
- 1
Assumptions & limits
Uses the accounting classifications, periods and policies you enter. Illustrative management-accounting model; it is not an audited statement, filing or determination of local accounting or tax compliance.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-18. Content checked against the stated method and examples. Our verification approach.
Common questions
Is this a tax depreciation schedule?
No. It illustrates an accelerated book-depreciation method. Local tax allowances, start dates and half-year conventions are excluded.
How does Sum-of-years-digits depreciation work?
Depreciation for year y = (cost−residual) × (life−y+1) / [life(life+1)/2].
What should I check before using Sum-of-years-digits depreciation?
Uses the accounting classifications, periods and policies you enter. Illustrative management-accounting model; it is not an audited statement, filing or determination of local accounting or tax compliance.