SYD front-loads depreciation expense into the earliest years of an asset’s life, using a declining fraction that shrinks a little more each year.
How it works
Adding up all the digits from 1 to the useful life gives the sum-of-the-years’-digits; each year’s depreciation is that year’s remaining life divided by the SYD, applied to the full depreciable base (cost minus salvage value).
What this does not include
This does not include the double-declining-balance method, a different accelerated approach this site also offers, which applies a constant rate to a shrinking book value instead of SYD’s declining fraction applied to a fixed base.
How to use this calculator
- Enter cost, salvage value, useful life, and the year you want to calculate.
Frequently asked questions
Why would a business choose an accelerated method over straight-line?
To match higher depreciation expense with an asset’s typically higher productivity and usage in its early years, and to defer more tax liability into later years when the asset may be less useful.
Does SYD ever produce the same result as straight-line?
Only in a one-year useful life case — for any longer useful life, SYD’s front-loaded schedule differs from straight-line’s equal annual amounts throughout.
Is SYD commonly used for tax purposes today?
Less common than it once was — MACRS is the standard tax depreciation system in the U.S. today, though SYD remains a recognized method for book (financial statement) depreciation.
