Apply for financingDepreciation calculator
This depreciation calculator generates the year-by-year MACRS deduction schedule for a piece of equipment, with or without a Section 179 or bonus first-year write-off.
MACRS depreciation schedule (7-year, half-year convention)
$85,000
| Year | Rate | Deduction | Remaining basis |
|---|---|---|---|
| 1 | 14.29% | $12,147 | $72,854 |
| 2 | 24.49% | $20,817 | $52,037 |
| 3 | 17.49% | $14,867 | $37,171 |
| 4 | 12.49% | $10,617 | $26,554 |
| 5 | 8.93% | $7,591 | $18,964 |
| 6 | 8.92% | $7,582 | $11,382 |
| 7 | 8.93% | $7,591 | $3,791 |
| 8 | 4.46% | $3,791 | $0 |
Illustrative MACRS schedule (200% DB, half-year convention). Actual recovery class, convention and deductions depend on the asset and when it is placed in service — confirm with a tax professional.
How it works
Most business equipment depreciates under MACRS over a 5- or 7-year recovery period using the 200% declining-balance method with a half-year convention — meaning you get half a year’s deduction in year one and the tail spills into the final year. Assets where Section 179 or 100% bonus applies often skip the schedule entirely. The table below shows the year-by-year deduction and remaining basis for whichever treatment you model.
Recovery class
Trucks, computers and autos are generally 5-year property. Most machinery, farm equipment and office furniture fall in 7-year. The IRS class assigned to your asset controls the schedule — the calculator models both.
Half-year convention
MACRS assumes the asset entered service mid-year regardless of the actual date, so year one takes half the annual rate and the final year takes the remainder. That is why a 5-year schedule runs six lines.
First-year write-off
Any basis removed by Section 179 or bonus depreciation leaves the schedule — enter that first-year amount and the remaining basis runs through MACRS. At 100% bonus, most equipment leaves nothing to schedule.
Why it matters
A machine’s depreciation profile affects its after-tax cost and how the payment compares to the write-off each year. Pair this with the Section 179 calculator for the full first-year picture.
Important questions
For 2026, most equipment uses MACRS with the 200% declining-balance method and half-year convention. Each recovery class has a fixed percentage table — multiply the remaining basis by each year’s rate to get that year’s deduction.
It depends on the asset class. Trucks, computers and autos are typically 5-year; most machinery, agricultural equipment and office furniture are 7-year. Some specialized equipment falls into other classes — the IRS asset class table or a tax professional confirms your asset.
They remove basis from the MACRS schedule before it starts. Any amount deducted under Section 179 or as bonus in year one is not depreciated again — the schedule runs only on the remaining basis.
The half-year convention, which is standard for equipment placed in service during the year. If more than 40% of your basis lands in the last quarter, the mid-quarter convention applies instead and the schedule changes — a tax advisor can confirm.
No — this is an illustrative schedule for planning. Actual depreciation depends on the asset class, in-service date, conventions and your other deductions. Your tax preparer or software produces the filed figures.
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