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Equipment Depreciation Calculator (MACRS / Straight-Line)

Year-1 deduction under straight-line or 5-year MACRS half-year for a piece of equipment.

Page updated 2026-09-04.

Equipment Depreciation Calculator (MACRS / Straight-Line) visual
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Calculator

Default $18,000.

Used in SL mode. Default 5.

Default 1.

Calculated Results

Deduction this year

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Remaining book value

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Rate applied

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MACRS half-year convention, year by year

An $18,000 depreciable asset under 5-year MACRS (the half-year convention table: 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%) takes a $3,600.00 deduction in year 1 -- 20% of the basis -- leaving a remaining book value of $14,400.00.

That 20% first-year rate is lower than a simple 1/5 = 20%... which happens to match here, but MACRS front-loads faster in years 2-3 (32%, then 19.2%) before tapering off, unlike straight-line depreciation which would deduct a flat 20% every year for all 5 years.

The six-entry table (not five) reflects the half-year convention baked into 5-year MACRS: the IRS treats the asset as placed in service mid-year, which spreads a nominal 5-year schedule across 6 tax years, with a half-year's worth of depreciation in both the first and last year.

MACRS vs. straight-line, and what neither one is

Half-year 5-year MACRS table (20% year 1). Not a Form 4562 and not tax advice. Switching the method to straight-line spreads the $18,000 basis evenly across the life field you set, with no front-loading -- useful for comparing book-value reporting against the accelerated tax treatment MACRS provides.

This estimates the deduction and book value for planning purposes; actual tax depreciation requires filing Form 4562 and depends on placed-in-service date, any Section 179 or bonus depreciation elections, and asset class rules that can override the standard MACRS table shown here.

Basis must be greater than zero for any deduction to compute, and the year field determines which single year's deduction and remaining book value are displayed.

Comparing to other depreciating assets

For vehicle-specific depreciation using a percentage-decline model instead of MACRS, the Auto Loan Payment & Depreciation Calculator uses a different curve suited to vehicles.

For real property depreciation, which uses a straight-line schedule over 27.5 or 39 years rather than 5-year MACRS, see the Real Estate Depreciation Schedule Calculator.

Frequently Asked Questions (FAQ)

How is the $3,600 year-1 deduction calculated?

Basis x the MACRS year-1 rate: $18,000 x 20% = $3,600. The 20% comes from the IRS's published 5-year MACRS half-year convention table, not a simple 1/5 straight-line split.

Why does the MACRS table have 6 entries for a 5-year asset?

Because the half-year convention assumes the asset is placed in service mid-year, spreading depreciation across parts of 6 calendar tax years even though the asset's useful life is 5 years -- a half-year of depreciation lands in both the first and sixth year.

What changes if I switch the method to straight-line?

The deduction becomes a flat basis / life every year (e.g., $18,000 / 5 = $3,600/year for all 5 years, coincidentally similar to MACRS year 1 here) instead of the front-loaded MACRS schedule. Straight-line is simpler but doesn't match how most equipment is actually depreciated for tax purposes.

Is this a substitute for Form 4562?

No. Half-year 5-year MACRS table (20% year 1). Not a Form 4562 and not tax advice. Actual tax filings require Form 4562 and may involve Section 179 expensing or bonus depreciation elections that change the deduction well beyond the standard MACRS table.

Does the placed-in-service date affect this calculation?

In real tax filings, yes -- placed-in-service timing determines which depreciation convention applies (half-year, mid-quarter, or mid-month). This calculator always assumes the standard half-year convention regardless of when in the year the asset was actually placed in service.

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