MACRS Depreciation Calculator

Each year's depreciation = Asset cost × the IRS's published percentage for that property class and year (IRS Publication 946, Table A-1). These percentages use the 200% (or 150%) declining balance method with a half-year convention, which assumes the asset was placed in service at the midpoint of the year — so a 5-year property actually spans 6 tax years, and a 7-year property spans 8.

3-year (some manufacturing tools), 5-year (computers, vehicles, office equipment), 7-year (office furniture, most equipment with no specific class), 10-year (water transportation equipment), 15-year (land improvements, restaurant property), and 20-year (farm buildings) — 5 and 7-year are by far the most common for typical business equipment.

The half-year convention assumes every asset is placed in service exactly halfway through the year, regardless of the actual purchase date — so year 1 gets roughly half of what a full year's depreciation would be, and the 'missing' half shows up as an extra partial year at the end of the schedule instead.

Yes — enter an optional Section 179 amount (capped at $2,560,000 for 2026) and a bonus depreciation percentage (100% is standard for 2026 under the OBBBA's permanent 100% bonus depreciation rule) to see how much of the cost is expensed immediately in year 1, with only the remaining basis following the standard MACRS schedule shown below.

Section 179 is applied first (up to your elected amount and the annual cap), then bonus depreciation is applied to whatever basis remains, and finally the standard MACRS percentages depreciate whatever basis is left after both — this calculator follows that same order.