Depreciation Calculator
Analyze your business assets' depreciation schedules using Straight-Line (SLM) and Written Down Value (WDV) methods side-by-side.
| Year | Rate (%) | Depreciation Expense | Accumulated Depreciation | Ending Book Value |
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How to use the Depreciation Calculator
- Enter the Original Asset Cost (the total purchase price, installation cost, and shipping charges of the asset).
- Set the Salvage / Scrap Value (the estimated trade-in or resale value of the asset at the end of its useful life).
- Adjust the Useful Life slider to represent the number of years the asset is expected to remain productive.
- If you have a fixed statutory tax depreciation rate, toggle Specify Custom WDV Rate and input the percentage directly.
- Toggle the chart and table tabs to compare the asset valuation decline and annual accounting charges between Straight-Line and Written Down Value (WDV) methods.
Straight-line vs Written Down Value (WDV) Methods
Straight-Line Method (SLM): Under SLM, the asset's book value decreases by an equal amount every year over its useful life. The annual depreciation is calculated as $(Cost - Salvage) / Useful\ Life$. This method is simple, transparent, and commonly used for intangible assets, patents, and buildings.
Written Down Value Method (WDV) / Reducing Balance: The WDV method applies a constant percentage rate to the asset's *remaining book value* at the start of each year. As a result, depreciation expenses are highest in Year 1 and decrease progressively. WDV is widely preferred for tax filings (such as under the Indian Income Tax Act) and fits assets like machinery, vehicles, and electronics that lose value rapidly in their initial years.
Statutory WDV Rate Formula: When salvage value is specified, the exact rate to reduce book value to salvage value over $n$ years is computed as $Rate = 1 - (Salvage / Cost)^{1/n}$.