Depreciation Calculator (MACRS)
Calculate MACRS and straight-line depreciation schedules for business assets by useful life.
Year 1 Depreciation
$10,000.00
Total Depreciation
$50,000.00
Depreciation Schedule
| Year 1 (20.00%) | $10,000.00 | Book: $40,000.00 |
| Year 2 (32.00%) | $16,000.00 | Book: $24,000.00 |
| Year 3 (19.20%) | $9,600.00 | Book: $14,400.00 |
| Year 4 (11.52%) | $5,760.00 | Book: $8,640.00 |
| Year 5 (11.52%) | $5,760.00 | Book: $2,880.00 |
| Year 6 (5.76%) | $2,880.00 | Book: $0.00 |
Use the Depreciation Calculator (MACRS) above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Our MACRS Depreciation Calculator helps businesses accurately determine depreciation deductions for tax year 2026 and beyond, covering both Modified Accelerated Cost Recovery System (MACRS) and straight-line methods. This is crucial for optimizing taxable income and understanding the true cost recovery for assets like new equipment or machinery purchased in 2026, directly impacting your bottom line.
The calculator implements MACRS tables utilizing either the Double Declining Balance (200% DB), 150% Declining Balance (150% DB), or Straight-Line (SL) methods over specified recovery periods (e.g., 5-year, 7-year property). It incorporates the half-year, mid-quarter, or mid-month convention, depending on the asset type and acquisition quarter, to precisely allocate depreciation.
A common mistake is incorrectly classifying asset recovery periods; ensure you refer to IRS Publication 946 for accurate property class lives. Remember that MACRS does not apply to intangible assets, and special rules, like the Section 179 deduction or bonus depreciation, can significantly alter the first-year depreciation amount, potentially reducing taxable income further in 2026.
Example: 2026 Purchase of New Manufacturing Equipment
- 1 Input: A manufacturing business purchases new equipment on April 15, 2026, for $150,000. It's classified as 7-year property for MACRS. We'll use the 200% Declining Balance method with the half-year convention.
- 2 Calculation: For 7-year property (200% DB, half-year convention), the 2026 depreciation rate is 14.29%. The depreciation for 2026 is $150,000 * 0.1429.
- 3 Intermediate Result: The first-year depreciation amount for 2026 is $21,435.00. The remaining book value for subsequent depreciation calculations is $150,000 - $21,435.00 = $128,565.00.
- 4 Final Result: The business can claim a $21,435.00 depreciation deduction for the manufacturing equipment in its 2026 tax filing, reducing its taxable income by that amount. The calculator would then generate the full depreciation schedule for the remaining 6 years.
Source: IRS — Publication 946, How To Depreciate Property · Last updated: April 2026
Frequently Asked Questions
What is MACRS depreciation?
What is the depreciation period for common business assets?
What is the difference between MACRS and straight-line depreciation?
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