Construction Equipment Depreciation Calculator — Track Your Equipment's Value Over Time

Equipment Details

Purchase Price ($)

Salvage Value ($)

Useful Life (years)

Depreciation Method

Operating Hours Per Year

Used for units-of-production and cost-per-hour calculations

Depreciation Analysis

Annual Depreciation

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Book Value After Year 1 —

Depreciation Per Hour —

Depreciable Amount —

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How It Works

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Enter Equipment Details

Input your purchase price, expected salvage value, and useful life in years. Choose your preferred depreciation method based on your accounting needs.

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See the Depreciation

Get annual depreciation expense, book value after year one, and the cost per operating hour. Compare methods to find the best fit for your tax strategy.

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Plan Your Finances

Use depreciation data to set accurate rental rates that cover your true cost of ownership and to plan equipment replacement timelines.

Track Equipment Value with Reservety

Monitor depreciation, track utilization hours, and manage your entire equipment fleet from one dashboard. Make data-driven decisions on when to buy, rent, or sell.

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Frequently Asked Questions

Which depreciation method should I use for construction equipment?

Straight-line is simplest and spreads cost evenly. Double declining balance front-loads depreciation, which is better for tax purposes since equipment loses value fastest in early years. Units of production is most accurate for equipment with variable usage, tying depreciation directly to operating hours.

What is a typical useful life for construction equipment?

Excavators and loaders typically have a 7-10 year useful life. Skid steers and compactors last 5-7 years. Generators can last 10-15 years with proper maintenance. The IRS publishes standard useful lives in Publication 946, but actual life depends on usage intensity and maintenance.

How does depreciation affect my rental pricing?

Your rental rate should cover depreciation plus operating costs, maintenance, insurance, and profit margin. Knowing your depreciation per hour helps you set a minimum rental rate. If your daily rate doesn't cover depreciation plus expenses, you're losing money on every rental.