Equipment Depreciation Calculator
Calculates annual depreciation, book value, and cost per hour for business equipment
Original purchase price of the equipment
Estimated value at end of useful life
Expected number of years the equipment will be used
Hours the equipment is used per year
Number of years the equipment has been in service
Enter equipment details to see annual depreciation
Book value after the specified years of use
Depreciation cost per hour of usage
Frequently Asked Questions
How do I depreciate business equipment?
Most business equipment is depreciated using MACRS over 5 or 7 years for tax purposes. For internal accounting, straight-line over the expected useful life is common. You can also use Section 179 to deduct the full cost in year one.
What is cost per hour for equipment?
Cost per hour divides the annual depreciation by estimated usage hours. If equipment depreciates $10,000/year and runs 2,000 hours, the cost is $5/hour. This helps with job costing and pricing decisions.
Should I track equipment depreciation for a small business?
Yes. Depreciation reduces your taxable income, lowers your tax bill, and helps you plan for equipment replacement. It also gives you accurate job costs if you charge clients for equipment usage.
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