Depreciation Calculator

Enter the value that you want to calculate depreciation..

Historical Cost of Goods
Number of years to depreciate over
Annual Depreciation Amount
Monthly Depreciation Amount
Depreciation Period
Original Cost of Goods
Annual Depreciation Rate (%)
Year 1 Depreciation Amount
Year 1 Written Down Value
Year 2 Depreciation Amount
Year 2 Written Down Value
Year 3 Depreciation Amount
Year 3 Written Down Value
Year 4 Depreciation Amount
Year 4 Written Down Value
Year 5 Depreciation Amount
Year 5 Written Down Value


Depreciation Calculator 

Introduction: Understanding depreciation is crucial for businesses and individuals who own assets. Our Depreciation Calculator simplifies this process, offering an easy way to calculate the depreciation of assets over time using different methods.

What is Depreciation? Depreciation represents the decrease in the value of an asset over its useful life. It is an accounting method that allocates the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or age.

Types of Depreciation Calculators:

Straight Line Depreciation Calculator:

Formula: (Cost of Asset - Salvage Value) / Useful Life of the Asset

Usage: Commonly used for its simplicity in evenly spreading the cost over the asset's life.

Reducing Balance Method Depreciation Calculator:

Formula: Book Value at Beginning of Year x Depreciation Rate

Usage: Suitable for assets that lose value quickly in their initial years.

How to Use the Calculator:

  1. Select the Method: Choose between Straight Line or Reducing Balance method.
  2. Input Asset Details: Enter the historical cost, salvage value, and useful life of the asset.
  3. Calculate Depreciation: The calculator will provide annual, monthly depreciation amounts, and the depreciation period.

Who Uses This Calculator?

  • Business Owners: To calculate the depreciation of their assets for accounting and tax purposes.
  • Accountants: For providing accurate financial reports and tax filings.
  • Students: Learning about asset management and accounting principles.

Frequently Asked Questions:


Q. What is the importance of calculating depreciation?

Answer: Depreciation calculation is essential for accurately recording the value of assets over time in financial statements and for tax deductions.

Q. Can this calculator be used for any type of asset?

Answer: Yes, it's versatile for different assets like machinery, vehicles, and equipment, provided you know the asset's cost, salvage value, and useful life.

Q. How often should depreciation be calculated?

Answer: Typically, depreciation is calculated annually, but our calculator also provides monthly figures for more detailed tracking.

Q. Does this calculator consider salvage value?

Answer: Yes, especially in the Straight Line method, where the salvage value is deducted from the asset's cost before dividing by its useful life.

Q. Is the Reducing Balance Method suitable for all assets?

Answer: It's best for assets that have higher usage or obsolescence in the early years, like vehicles or technology.