Calculate asset depreciation using multiple methods and generate detailed depreciation schedules
Enter asset details to see depreciation calculation
Depreciation represents the reduction in value of business assets over time due to wear and tear, obsolescence, and usage. It's a crucial accounting concept that helps businesses accurately reflect the true value of their assets and spread the cost of expensive equipment over their useful life.
Equal depreciation expense each year throughout the asset's useful life.
Formula: (Cost - Salvage Value) ÷ Useful Life
Higher depreciation in early years, decreasing over time.
Formula: Current Value × Depreciation Rate
Accelerated depreciation with decreasing amounts each year.
Formula: (Cost - Salvage) × (Remaining Life ÷ Sum of Years)
A depreciation calculator automates complex calculations by taking into account key variables such as asset cost, salvage value (estimated worth at end of useful life), useful life in years, and the chosen depreciation method. It generates detailed year-by-year schedules showing opening values, depreciation amounts, and closing values.
Scenario: A business purchases machinery for ₹1,00,000 with a 5-year useful life and ₹10,000 salvage value.
Straight Line: Annual depreciation = (₹1,00,000 - ₹10,000) ÷ 5 = ₹18,000
Declining Balance (20%): Year 1 = ₹20,000, Year 2 = ₹16,000, etc.
Sum of Years: Year 1 = ₹30,000, Year 2 = ₹24,000, etc.
Eliminates manual calculation errors and saves significant time on complex depreciation schedules.
Helps with accurate financial reporting and tax planning by providing precise depreciation figures.
Easily compare different depreciation methods to choose the most suitable approach for your business.
Provides detailed schedules for better asset management and replacement planning decisions.
Our expert Chartered Accountants can help you optimize your depreciation strategies and ensure compliance with accounting standards for maximum tax benefits.