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Software and website cost capitalization calculator.

List what the build cost, line by line. The calculator says which costs to capitalise and which to expense under US GAAP before or after ASU 2025-06, or under IFRS, with the reason and the rule for each line. Then it writes the straight-line amortization schedule and the journal entries. Every rule cites its source.

ExampleA fictional internal operations portal with eleven cost lines. Switch the framework to see the totals move, type over the lines, or start blank.

Framework and project

Accounting framework
What is being built
Facts about the project

Amortisation starts here.

Your own estimate.

Cost lines

One line per cost, with what it was and when it was spent. The badge on each line updates as you type. Nothing you enter leaves your browser.

Cost line 1: Discovery workshops and vendor selection
Expense
Cost line 2: Own engineers: coding, configuration, testing
Capitalise
Cost line 3: Contract developers: ERP and payroll integrations
Capitalise
Cost line 4: Prototype of automatic shift scheduling, not yet proven
Capitalise
Cost line 5: Interface design
Capitalise
Cost line 6: Component library licence
Capitalise
Cost line 7: Migrating records from the old system
Expense
Cost line 8: Cloud hosting during the build
Expense · check
Cost line 9: Share of office and management overhead
Expense
Cost line 10: Training the operations team
Expense
Cost line 11: Bug fixes in the first quarter live
Expense

US GAAP, before ASU 2025-06: capitalise $182,000.00, expense $41,600.00, amortised at $5,055.55 a month over 36 months. 1 line to check.

Capitalise or expense

Capitalise
$182,000.00
Expense
$41,600.00
Total entered
$223,600.00
Amortisation a month
$5,055.55

An estimate to discuss with your accountant, not accounting advice. Stage model in ASC 350-40, with ASC 350-50 for website costs. ASU 2025-06 replaces it for annual periods beginning after 15 December 2027, or earlier if you adopt it early. Lines marked “check” rest on a judgement the sources do not settle; they are expensed here.

Each cost line with its treatment, the reason and the rule it rests on.
Cost lineAmountTreatmentWhy, and the rule
Discovery workshops and vendor selectionPlanning, feasibility, vendor selection$12,000.00ExpenseInternal and external costs in the preliminary project stage are expensed as incurred.ASC 350-40, preliminary project stage · EisnerAmper (opens in a new tab)
Own engineers: coding, configuration, testingOwn staff: design, coding, configuration, testing$96,000.00CapitaliseIn the application development stage, external direct costs and the payroll of staff working directly on the project are capitalised.ASC 350-40, application development stage · EisnerAmper (opens in a new tab)
Contract developers: ERP and payroll integrationsExternal developers and contractors$48,000.00CapitaliseIn the application development stage, external direct costs and the payroll of staff working directly on the project are capitalised.ASC 350-40, application development stage · EisnerAmper (opens in a new tab)
Prototype of automatic shift scheduling, not yet provenExternal developers and contractors$18,000.00CapitaliseIn the application development stage, external direct costs and the payroll of staff working directly on the project are capitalised.ASC 350-40, application development stage · EisnerAmper (opens in a new tab)
Interface designVisual and interface design$14,000.00CapitaliseIn the application development stage, external direct costs and the payroll of staff working directly on the project are capitalised.ASC 350-40, application development stage · EisnerAmper (opens in a new tab)
Component library licenceSoftware bought for the build$6,000.00CapitaliseIn the application development stage, external direct costs and the payroll of staff working directly on the project are capitalised.ASC 350-40, application development stage · EisnerAmper (opens in a new tab)
Migrating records from the old systemData conversion and migration$9,000.00ExpenseData conversion and migration are expensed as incurred.ASC 350-40, data conversion costs · EisnerAmper (opens in a new tab)
Cloud hosting during the buildHosting and cloud fees$3,600.00ExpensecheckHosting paid to a third party is a service, expensed as it is received; the sources state this for websites, so it is applied here by analogy.Hosting services, by analogy with the website rule · PwC Viewpoint, Software costs guide (opens in a new tab)
Share of office and management overheadGeneral, admin and overhead$7,500.00ExpenseGeneral, administrative and overhead costs are not capitalised.ASC 350-40, general and administrative and overhead costs · EisnerAmper (opens in a new tab)
Training the operations teamTraining staff$4,500.00ExpenseTraining is expensed as incurred; it is not a cost of building the software.ASC 350-40, training costs · EisnerAmper (opens in a new tab)
Bug fixes in the first quarter liveMaintenance, support, bug fixes$5,000.00ExpenseMaintenance after launch is expensed as incurred.ASC 350-40, post-implementation stage · EisnerAmper (opens in a new tab)

Amortisation schedule

Straight-line over 36 months from Jul 2026, the month the software was ready for its intended use, with a full month’s charge in that month. Straight-line is the default method under both US GAAP and IFRS. Capitalised upgrades made after launch start amortising when they are ready for use; this schedule starts everything at one date.

Amortisation charge and closing book value by financial year.
Financial yearChargeClosing book value
FY 2026$30,333.30$151,666.70
FY 2027$60,666.60$91,000.10
FY 2028$60,666.60$30,333.50
FY 2029$30,333.50$0.00
Month by month (36 months)
Amortisation charge, accumulated amortisation and book value by month.
MonthChargeAccumulatedBook value
Jul 2026$5,055.55$5,055.55$176,944.45
Aug 2026$5,055.55$10,111.10$171,888.90
Sep 2026$5,055.55$15,166.65$166,833.35
Oct 2026$5,055.55$20,222.20$161,777.80
Nov 2026$5,055.55$25,277.75$156,722.25
Dec 2026$5,055.55$30,333.30$151,666.70
Jan 2027$5,055.55$35,388.85$146,611.15
Feb 2027$5,055.55$40,444.40$141,555.60
Mar 2027$5,055.55$45,499.95$136,500.05
Apr 2027$5,055.55$50,555.50$131,444.50
May 2027$5,055.55$55,611.05$126,388.95
Jun 2027$5,055.55$60,666.60$121,333.40
Jul 2027$5,055.55$65,722.15$116,277.85
Aug 2027$5,055.55$70,777.70$111,222.30
Sep 2027$5,055.55$75,833.25$106,166.75
Oct 2027$5,055.55$80,888.80$101,111.20
Nov 2027$5,055.55$85,944.35$96,055.65
Dec 2027$5,055.55$90,999.90$91,000.10
Jan 2028$5,055.55$96,055.45$85,944.55
Feb 2028$5,055.55$101,111.00$80,889.00
Mar 2028$5,055.55$106,166.55$75,833.45
Apr 2028$5,055.55$111,222.10$70,777.90
May 2028$5,055.55$116,277.65$65,722.35
Jun 2028$5,055.55$121,333.20$60,666.80
Jul 2028$5,055.55$126,388.75$55,611.25
Aug 2028$5,055.55$131,444.30$50,555.70
Sep 2028$5,055.55$136,499.85$45,500.15
Oct 2028$5,055.55$141,555.40$40,444.60
Nov 2028$5,055.55$146,610.95$35,389.05
Dec 2028$5,055.55$151,666.50$30,333.50
Jan 2029$5,055.55$156,722.05$25,277.95
Feb 2029$5,055.55$161,777.60$20,222.40
Mar 2029$5,055.55$166,833.15$15,166.85
Apr 2029$5,055.55$171,888.70$10,111.30
May 2029$5,055.55$176,944.25$5,055.75
Jun 2029$5,055.75$182,000.00$0.00

Journal entries

As the costs are incurredDuring the project, in total
AccountDebitCredit
Capitalised software (asset)$182,000.00
Software and website costs (expense)$41,600.00
Cash, payables or accrued payroll$223,600.00
Each month of the useful lifeFrom Jul 2026; the final month, Jun 2029, is $5,055.75
AccountDebitCredit
Amortisation expense$5,055.55
Accumulated amortisation, capitalised software$5,055.55

Sources for every rule

Each rule the calculator applies was read on its source on 18 October 2026. Where the sources do not settle a case, the line is expensed and marked “check” instead of guessed. An estimate to discuss with your accountant, not accounting advice.

  1. KPMG Defining Issues: FASB issues ASU: Accounting for internal-use software costs (19 September 2025) (opens in a new tab)Stages removed; costs expensed until both thresholds are met; data conversion, training and maintenance still expensed; capitalisation stops when the software is substantially complete and ready for its intended use.Checked 2026-10-18
  2. Deloitte Heads Up, Vol. 32, Issue 10: FASB amends guidance on the accounting for and disclosure of software costs (opens in a new tab)The ASC 350-40-25-12 thresholds, the two significant development uncertainty factors, transition methods.Checked 2026-10-18
  3. Deloitte DART: FASB amends guidance on software costs (18 September 2025) (opens in a new tab)ASU 2025-06 supersedes ASC 350-50 and moves the website rules into ASC 350-40; effective date; early adoption.Checked 2026-10-18
  4. BDO: New ASU on internal-use software costs guidance (opens in a new tab)Effective for all entities, private companies included, for annual periods beginning after 15 December 2027; the three transition methods.Checked 2026-10-18
  5. PKF O'Connor Davies: FASB's internal-use software guidance: what companies need to know (opens in a new tab)Issued 18 September 2025; the two capitalisation conditions; capitalisable costs unchanged, such as external developers and payroll for coding, configuration and testing.Checked 2026-10-18
  6. EisnerAmper: The three stages of capitalizing internal-use software (2024) (opens in a new tab)The ASC 350-40 stage model before ASU 2025-06: what is expensed and capitalised in each stage, and upgrades that add functionality.Checked 2026-10-18
  7. PwC Viewpoint, Software costs guide: 5.2A Website development costs, before ASU 2025-06 (opens in a new tab)ASC 350-50 by stage: planning, application and infrastructure, graphics, content, operating; hosting fees and domain names.Checked 2026-10-18
  8. BDO: Accounting for software costs (July 2026) (opens in a new tab)US GAAP amortisation: straight-line unless another systematic and rational basis is more representative, starting when the software is ready for its intended use.Checked 2026-10-18
  9. IFRS Foundation: SIC-32 Intangible Assets: Web Site Costs (opens in a new tab)A website is an internally generated intangible asset under IAS 38; a site mainly for promoting and advertising is expensed.Checked 2026-10-18
  10. Australian Accounting Standards Board: AASB Interpretation 132 Intangible Assets: Web Site Costs (compiled), which incorporates SIC-32 (opens in a new tab)SIC-32 paragraphs 2 to 10 and the illustrative example: each stage, content that advertises own products, hosting, domain names, training, overheads, a short useful life.Checked 2026-10-18
  11. IFRS Foundation: IAS 38 Intangible Assets (opens in a new tab)Research expenditure is expensed; development expenditure that meets the criteria is capitalised; finite-life assets are amortised.Checked 2026-10-18
  12. Australian Accounting Standards Board: AASB 138 Intangible Assets (compiled), equivalent to IAS 38 (opens in a new tab)IAS 38 paragraphs 54, 57, 66, 67 and 97: research, the six development criteria, directly attributable cost, what is excluded, straight-line amortisation from when available for use.Checked 2026-10-18
  13. ICAEW Technical Advisory Service: Can I capitalise website development costs under FRS 102? (issued July 2018, reviewed January 2026) (opens in a new tab)Where UK FRS 102 differs: capitalising development costs is a policy choice (18.8K); advertising websites are expensed (18.8C(d)).Checked 2026-10-18

The three frameworks

One cost list, three sets of rules.

  • 01

    US GAAP, before ASU 2025-06

    ASC 350-40 splits a project into three stages. Preliminary-stage costs are expensed, application development costs are capitalised once the project is authorised, funded and probable of completion, and post-implementation costs are expensed. Website costs follow ASC 350-50.

  • 02

    US GAAP with ASU 2025-06

    No stages. Capitalisation starts when management has authorised and committed funding and completion is probable, which it is not while significant development uncertainty remains. ASC 350-50 is superseded. Effective for annual periods beginning after 15 December 2027.

  • 03

    IFRS: IAS 38 and SIC-32

    Research and planning are expensed. Development costs are capitalised once all six IAS 38.57 criteria are met. For a website, SIC-32 adds that content advertising your own products, and a site built mainly to promote them, are expensed.

FAQs · Capitalization calculator

Capitalizing software and website costs · frequently asked questions

What US GAAP and IFRS allow you to capitalise, what ASU 2025-06 changes, and how amortization works.

Some of them. Under US GAAP before ASU 2025-06, ASC 350-50 expenses planning, capitalises the application and infrastructure work and the initial graphics once the project is authorised, funded and probable of completion, and expenses content entry, training, maintenance and hosting. Under IFRS, SIC-32 capitalises directly attributable development costs, but a site built mainly to advertise your own products is expensed in full.
It depends on what each cost was for and when it was spent. Planning and evaluating vendors is expensed. Building the site, meaning code, configuration, testing and initial graphics, is capitalised once management has authorised and funded the project and completion is probable. Content entry, data conversion, training, hosting fees, maintenance and overhead are expensed. Enter your lines and the calculator applies this one line at a time.
FASB issued it on 18 September 2025. It removes the three project stages: capitalisation starts once management has authorised and committed to funding the project and it is probable the project will be completed and the software used as intended. Completion is not probable while significant development uncertainty remains, such as novel features not yet proven by coding and testing. It supersedes ASC 350-50, moving the website rules into ASC 350-40. What can be capitalised, such as coding and testing, and what is expensed, such as training and data conversion, is unchanged.
For all entities, private companies included, for annual periods beginning after 15 December 2027, and interim periods within them. Early adoption is permitted at the beginning of an annual period. Transition can be prospective, modified prospective, which writes off capitalised costs on in-process projects that no longer qualify, or retrospective.
The capitalised total is amortised over its estimated useful life, on a straight-line basis unless another systematic method better reflects how the asset is used. Under US GAAP amortization starts when the software is ready for its intended use; under IFRS when it is available for use. The calculator spreads the total evenly by month from the month you enter, with the last month taking any rounding, and groups it by financial year.
Yes, if the site can show how it will bring probable future economic benefits, for example by taking orders, and the IAS 38 development criteria are met. SIC-32 then capitalises the application, infrastructure, graphical design and content development work that is directly attributable to getting the site working. Planning, training, overhead and content that advertises your own products are expensed, and the useful life should be short.
Only if your accounting policy is to capitalise development expenditure: under FRS 102 that is a choice (paragraph 18.8K), where IAS 38 requires it once the criteria are met. A site aimed mainly at advertising or promotion is expensed (18.8C(d)), and the cost must meet the intangible asset definition and recognition criteria. ICAEW sets this out in its helpsheet, which the page links.
Under both US GAAP and IFRS: training, general and administrative overhead, and maintenance after launch. Under US GAAP, data conversion and content entry are expensed too. Under IFRS data conversion has no specific rule, so the calculator expenses it and marks it for you to check.
No to both. It is an estimate to discuss with your accountant, who should confirm each judgement for your facts. Everything runs in your browser: nothing you type is sent to QalbIT, and the share link keeps your inputs in the part of the address the browser never sends.

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