Depreciation Calculator Germany
German depreciation (AfA) from cost and useful life: straight-line or declining-balance up to 30% (bought 07/2025–12/2027), with a yearly schedule.
Annual depreciation
€5,000.00
Depreciation rate
10.00%
Straight-line
Depreciation schedule
| Year | Depreciation | Cumulative | Residual value |
|---|---|---|---|
| 0 | - | - | €50,000.00 |
| 1 | €5,000.00 | €5,000.00 | €45,000.00 |
| 2 | €5,000.00 | €10,000.00 | €40,000.00 |
| 3 | €5,000.00 | €15,000.00 | €35,000.00 |
| 4 | €5,000.00 | €20,000.00 | €30,000.00 |
| 5 | €5,000.00 | €25,000.00 | €25,000.00 |
| 6 | €5,000.00 | €30,000.00 | €20,000.00 |
| 7 | €5,000.00 | €35,000.00 | €15,000.00 |
| 8 | €5,000.00 | €40,000.00 | €10,000.00 |
| 9 | €5,000.00 | €45,000.00 | €5,000.00 |
| 10 | €5,000.00 | €50,000.00 | €0.00 |
Declining balance (§ 7(2) EStG, assets acquired 07/2025–12/2027): max. 30% or 3 times the straight-line rate. Without guarantee.
Note: These calculations are for informational purposes only and do not replace professional tax or financial advice. All information without guarantee.
FAQ
Frequently Asked Questions
What is depreciation (AfA)?
AfA (Absetzung für Abnutzung) allows businesses and landlords to deduct the cost of assets over their useful life. Buildings are typically depreciated over 33 or 50 years, equipment over 3-15 years.
What types of depreciation are there?
The main types are straight-line depreciation (equal annual amounts) and declining-balance depreciation (higher amounts in early years). For residential buildings, a special degressive rate of 5% was reintroduced in 2023.
How does the calculator compute declining-balance depreciation, and when does it switch to straight-line?
For movable assets acquired between 1 July 2025 and 31 December 2027, § 7(2) EStG allows declining-balance depreciation of up to 30% of the remaining book value, at most three times the straight-line rate. Example with the default values (€50,000, 10 years): straight-line €5,000 per year; declining-balance €15,000 in year 1 and €10,500 in year 2. Because the declining-balance amounts fall every year, the calculator automatically switches to straight-line depreciation of the remaining value as soon as that is higher – here from year 8, at €1,372.57 per year. Buildings have their own rates (e.g. 5% declining-balance for new residential buildings), which this mode does not cover.
Guide
What is the Depreciation Calculator Germany?
The depreciation calculator computes the tax depreciation (AfA) on assets and real estate. It supports straight-line and declining-balance depreciation.
How does the Depreciation Calculator Germany work?
Enter the acquisition cost, useful life and depreciation method. Straight-line depreciation spreads the cost evenly over the useful life. Declining-balance depreciation – in this calculator for movable assets under Section 7(2) EStG, up to 30% of the remaining value – starts higher and decreases annually.
Key Data and Facts
Straight-line residential buildings: 2% (50 years), new builds from 2023: 3% (33 years). Declining-balance residential: 5% (since Oct 2023). Movable assets: per official depreciation tables; if acquired 07/2025–12/2027, optionally declining-balance at up to 30% (max. 3 times the straight-line rate, § 7(2) EStG).
Step-by-Step Guide
How to calculate depreciation (AfA) step by step: 1. Determine the acquisition/production costs: For real estate: purchase price minus the land share (only the building is depreciated). For movable assets: purchase price including incidental costs (transport, installation). 2. Determine the useful life: Residential buildings: 50 years (2 % straight-line) for buildings constructed from 1925, or 40 years (2.5 %) for older buildings. New construction from 01.01.2023: 33 years (3 %). Movable assets: according to the official AfA table (e.g. PC: 3 years, car: 6 years, office furniture: 13 years). 3. Choose the depreciation method: Straight-line AfA: evenly over the useful life. Declining-balance AfA for residential buildings (since 10/2023): 5 % of the residual value, with amounts decreasing each year. Low-value assets (GWG) up to EUR 800 net: immediately fully deductible. Pooled items of EUR 250-1,000: 5 years straight-line (optional). 4. Calculate the annual AfA: Straight-line: acquisition costs / useful life. Declining-balance: residual value x percentage rate. Example: Rented condominium, purchase price EUR 300,000, land share EUR 60,000, year built 2024. Building value: EUR 240,000. Straight-line AfA (3 %): 240,000 / 33 = EUR 7,272.73/year. Declining-balance AfA (5 %): Year 1: 240,000 x 5 % = EUR 12,000. Year 2: 228,000 x 5 % = EUR 11,400. The declining-balance AfA is especially worthwhile in the early years and can later be switched to straight-line.
Calculation Example
Rented apartment, building share 240,000 EUR, year of construction 2024. Straight-line AfA (3%): 7,272.73 EUR/year. Declining-balance AfA (5%): year 1: 12,000 EUR, year 2: 11,400 EUR. Tax savings at 35% marginal tax rate (declining-balance year 1): 4,200 EUR.
Sources
Official sources
Calculations are based on applicable German laws and official data:
- Einkommensteuergesetz (EStG) — gesetze-im-internet.de
- Bundesministerium der Finanzen (BMF)
- Statistisches Bundesamt (Destatis)
Full methodology at Methodology.
Reviewed by Konstantin Iakovlev · Last updated:
Taxes
Related Calculators
Gross-to-Net Calculator Germany
Work out your 2026 net salary in Germany by tax class, state and health insurance, with wage tax, Soli, church tax and every social contribution itemised.
Income Tax Calculator Germany
Calculate German income tax for 2026 under § 32a EStG (basic tariff) from taxable income, with Soli, church tax by state and your marginal and average tax rate.
VAT Calculator Germany
Convert net to gross or gross to net with German VAT at 19%, 7% or a custom rate. Shows the net amount, the VAT and the gross amount with the calculation.
Wage Tax Calculator Germany
German wage tax 2026 on your monthly pay by tax class I–VI, with Soli, church tax, child allowances and annual figures including the Vorsorgepauschale.