Depreciation Calculator
Spread an asset's cost over its useful life with four accounting methods and see book value year by year.
Depreciation Calculator
Shows accounting (book) depreciation. Tax depreciation follows separate schedules and rules and is not calculated here.
Comma-separated, one value per year.
Depreciable Amount
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Year 1 Expense
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Total Depreciation
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Book Value at End
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Book value and accumulated depreciation
Depreciation Schedule
| Year | Depreciation expense (₹) | Accumulated depreciation (₹) | Book value at year end (₹) |
|---|
Assumptions & method
- Depreciable base = Cost − Salvage value. Book value is never reduced below salvage value.
- Straight-line: (Cost − Salvage) ÷ Useful life each year.
- Declining balance: Opening book value × (Multiple ÷ Life), limited so book value stops at salvage. Optional switch to straight-line uses (Opening book value − Salvage) ÷ remaining years when that is larger.
- Sum-of-years'-digits: (Cost − Salvage) × remaining life ÷ [n(n+1)/2] for year 1 to n.
- Units-of-production: (Cost − Salvage) ÷ Total lifetime units × units used that year, capped at the remaining depreciable amount. Only the first N yearly values are used, where N is the useful life, and missing years count as zero units.
- Full-year convention: the asset is assumed in service for whole years from the start of year 1. No mid-year or partial-period conventions are applied.
- This is accounting (book) depreciation. Tax depreciation uses different schedules and rules and is not calculated here.
Results are estimates based on the figures you enter. They are not guarantees and not accounting or tax advice.
What is depreciation and how do the methods compare?
When a business buys a machine, vehicle or piece of equipment, the cost benefits several years of revenue. Depreciation matches that cost to those years. The method you choose changes timing, not the total: over the full life the depreciable amount (cost minus salvage) is the same. Straight-line is simplest and suits assets used evenly. Declining balance and sum-of-years'-digits front-load the expense, which suits assets that lose value or usefulness quickly. Units-of-production follows output such as hours or units made. Book depreciation set by your accounting policy is separate from the tax depreciation your tax rules allow, which commonly uses different schedules.