Depreciation Calculator

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.