This sum of years depreciation calculator can be used to provide the sum of the years digits depreciation expense for any period in the useful life of an asset up to a maximum of 600 periods.
The calculator will also produce a depreciation schedule setting out for each period, the beginning asset book value, the depreciation expense for the period, and the ending asset book value.
Sum of Years Digits Depreciation Formula
The template uses the sum of years digits depreciation formula to calculate the depreciation for each period. The formula is as follows.
Depreciation expense = (Cost - Salvage value) x (Remaining life / Sum of periods)
Sum of Years Depreciation Calculator Instructions
The Excel sum of years depreciation calculator, available for download below, produces an asset depreciation schedule by entering details relating to the cost of the asset, the asset salvage value at the end of its useful life, and the number of periods in the useful lifetime.
Instructions for the use of the depreciation calculator are below.
Step 1
Firstly enter the cost of the asset.
Step 2
Likewise enter the salvage value. This is the estimated salvage value of the asset at the end of its useful life.
Step 3
Enter the useful life. This is the estimated number of periods in the useful life of the asset. A period can be any term (i.e. month, year etc). The calculator calculates the depreciation expense for this period. For example is an asset has a 4 year life and you enter the useful life as 4, then the depreciation will be for each year. In contrast if you enter the useful life as 48 months, then the calculation of the depreciation expense is for each month.
Step 4
Enter the period for which you want the sum of the years digits depreciation expense. For example, if you want the depreciation expense for period 11 enter 11.
Step 5
Finally the sum of years depreciation calculator works out the depreciation expense for the period entered in step 4.
In addition, the calculator provides a sum of the years digits depreciation schedule setting out for each period, the beginning asset book value, the depreciation expense for the period, and the ending asset book value.
Sum of Years Depreciation Calculator Download
To conclude the Excel sum of years depreciation calculator, available for download below, will calculate the depreciation expense for any asset with a maximum useful life of up to 600 periods.
Users use this sum of years depreciation calculator template at their own risk. We make no warranty or representation as to its accuracy. We are covered by the terms of our legal disclaimer, which you are deemed to have read. Additionally this is an example of a sum of year digits calculator that you might use. It is a purely illustrative sum of years digits calculator. Furthermore this is not intended to reflect general standards or targets for any particular company or sector. However, if you do spot a mistake in the accelerated depreciation calculator, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.