About the Depreciation Calculator
What is the Depreciation Calculator?
Depreciation spreads an asset's cost over its useful life. This depreciation calculator supports both methods used in India: straight-line (SLM), which charges the same amount every year, and written-down value (WDV), which charges a fixed percentage of the remaining value.
Enter the cost, method, rate and number of years for the closing value and a full schedule.
How to use the Depreciation Calculator
- Original Cost (₹) (sample: 50,00,000)
- Method (sample: Written-down value (fixed % of remaining value))
- Depreciation Rate (% per year) (sample: 10)
- Years (sample: 10)
- Salvage Value (₹, straight-line only) (sample: 0)
- Press Calculate Depreciation (results also refresh as you type). The result card shows the Value After Depreciation, along with Total depreciation, First-year depreciation and Value as % of cost.
Formula used
SLM: Depreciation = (Cost − Salvage) × Rate; WDV: Value after n years = Cost × (1 − Rate)ⁿ
- Income-tax WDV rates = residential building 5%, other buildings 10%, furniture 10%, cars 15%, computers 40%
Income tax uses WDV on blocks of assets; the Companies Act uses useful lives from Schedule II.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Original Cost (₹) | 50,00,000 |
| Method | Written-down value (fixed % of remaining value) |
| Depreciation Rate (% per year) | 10 |
| Years | 10 |
| Salvage Value (₹, straight-line only) | 0 |
| Result | Value |
|---|---|
| Value After Depreciation | ₹17,43,392 |
| Total depreciation | ₹32,56,608 |
| First-year depreciation | ₹5,00,000 |
| Value as % of cost | 34.9% |
Tips for using the Depreciation Calculator
- For assets used under 180 days in the year of purchase, only half the tax depreciation is allowed that year.
- Individuals cannot claim depreciation on a let-out house; the 30% standard deduction replaces it.