Double Declining — Rate
This formula gives you an "accelerated" depreciation rate — meaning the asset loses more of its value in the early years and less later on, rather than the same amount every year. It's used when equipment loses value fastest when it's new, like computers or vehicles.
To calculate it, you first find the straight-line rate (100% ÷ useful life), then simply double it by multiplying by 2. That's why it's called "double declining": the rate is twice the steady straight-line rate, and it's applied to the asset's shrinking (declining) value each year rather than its original cost.
A higher rate means value drops very quickly up front. A project manager or accountant chooses this method when they want to reflect that an asset is most valuable and productive when brand new, or to record larger expenses early — which can be useful for tax and financial planning. Reading it: the bigger the number, the faster the asset is written down in its first years.
Think of it like driving a brand-new car off the dealership lot: it loses a huge chunk of its value in the first year, then keeps dropping but by smaller amounts each year after that.
Say your project buys laptops with a useful life of 5 years. The straight-line rate would be 100% ÷ 5 = 20%. Double it: 2 × 20% = 40%. So in year one you depreciate 40% of the laptops' value. In year two you apply that same 40% to whatever value is left, and so on — meaning the biggest drop happens right at the start.
Every PMP formula explained free — plus worked examples and practice in PMP Math, and full timed mocks in the simulator.