Depreciation Calculator (MACRS)

Recovering the cost of equipment, machinery, and other business assets over time is what the Modified Accelerated Cost Recovery System (MACRS) governs, and this tool calculates those deductions for tax year 2026 and beyond under both MACRS and straight-line methods. Choosing the right approach affects how much taxable income you report each year and how quickly you recover what you spent on assets placed in service.

Calculations follow the IRS MACRS tables, applying the Double Declining Balance (200% DB), 150% Declining Balance (150% DB), or Straight-Line (SL) method across the recovery period assigned to each property class, such as 5-year or 7-year property. Whether the half-year, mid-quarter, or mid-month convention applies depends on the asset type and the quarter in which it was acquired, and the tool uses the correct one to spread the deduction across each year.

Recovery periods are easy to misjudge, so check IRS Publication 946 to confirm the correct property class life before relying on a result. MACRS does not cover intangible assets, and provisions such as the Section 179 deduction or bonus depreciation can change the first-year figure substantially, often lowering taxable income more than the standard schedule alone would.