Depreciation Calculator
Free depreciation calculator with straight-line and WDV (reducing balance) methods. Get annual depreciation and year-wise book value for any business asset.
About the Depreciation Calculator
A depreciation calculator that spreads an asset's cost over its useful life using either straight-line (SLM) or written-down value (WDV) method, with the year-wise book value for each year.
Depreciation spreads the cost of a long-lived asset — machinery, vehicles, computers, furniture — over the years it's used, so each year's accounts carry a fair share of the expense instead of one distorted year. It matters twice: in your books (profit is overstated if you ignore it) and in your tax return (depreciation is a deductible expense, and the Income Tax Act prescribes WDV rates for most asset blocks).
This calculator covers the two standard methods. Straight-line (SLM) charges the same amount every year: (cost − salvage value) ÷ useful life. A ₹5,00,000 machine with ₹50,000 salvage value and a 5-year life costs ₹90,000 a year. Companies commonly use SLM for books under Schedule II useful lives. Written-down value (WDV) charges a fixed percentage of the asset's remaining book value, so the expense is front-loaded — a 25% WDV on ₹5,00,000 takes ₹1,25,000 in year 1 but only ₹70,312 in year 3. Income-tax depreciation in India is WDV for most assets: commonly 15% for plant and machinery, 40% for computers, 10% for furniture and 30–45% for vehicles depending on use — check the current rate for your block.
Choose the method the context requires: your accountant may keep SLM books and a WDV tax computation for the same asset. The WDV view here lists the book value at the end of each year of the asset's life so you can see the declining balance at a glance.
How to use the Depreciation Calculator
- Enter your basic details in the fields provided.
- Select the appropriate options from the dropdowns.
- View your precise calculation results instantly.
Worked example
₹5,00,000 asset, ₹50,000 salvage, 5-year life → SLM charges ₹90,000 each year (book value ₹4,10,000 after year 1). WDV at 25% on the same asset charges ₹1,25,000 in year 1, and the book value falls to ₹2,10,937.50 by year 3.
Formula
SLM: annual depreciation = (asset cost − salvage value) ÷ useful life. WDV: depreciation = current book value × WDV rate, applied to the reducing balance each year.Frequently asked questions
- Which method does Indian income tax use?
- WDV (reducing balance) on blocks of assets, at prescribed rates — commonly 15% for plant & machinery, 40% for computers and software, 10% for furniture. SLM is permitted only for certain power-sector undertakings.
- What is salvage (residual) value?
- The amount you expect to recover when the asset is disposed of at the end of its useful life. Companies Act guidance generally caps it at 5% of cost for Schedule II calculations; it's often taken as zero for low-value assets.
- SLM or WDV — which is better?
- Neither is universally better. SLM gives smooth, predictable book expenses; WDV front-loads the deduction, which matches the faster early loss of value in most equipment and gives earlier tax relief. Tax law usually decides for you: WDV in India.
- Is my financial data secure?
- Absolutely. All calculations happen entirely in your browser and none of your inputs are saved or sent to any server.
- Can I use this for official tax filing?
- While highly accurate for planning and estimation, always consult your CA or tax professional for final official filings.
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