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Depreciation Calculator

Build a depreciation schedule by straight line, double declining or written-down value.

By Nitin Raturi · Last reviewed

Your asset

How to use the Depreciation Calculator

Spread an asset’s cost over its life, year by year.

  1. Enter the cost, salvage value and useful life.
  2. Choose straight line, double declining or written-down value.
  3. For WDV, enter the rate.
  4. Read the schedule: depreciation, accumulated total and book value each year.

Good to know

  • Declining methods stop at the salvage value.
  • Straight line lands exactly on salvage in the final year.

Cost of the asset

What the asset cost to buy and get ready for use, including delivery and installation.

How to fill it in

  • Enter the amount in rupees. Short forms such as 10L work.

Salvage (residual) value

What you expect the asset to be worth at the end of its life.

How to fill it in

  • Enter ₹0 or more, below the cost.

Useful life

How many years the asset will be used.

How to fill it in

  • Enter 1 to 100 whole years.
Method

Method

How the cost is spread over the years.

How to fill it in

  • Straight line: the same amount each year.
  • Double declining: twice the straight-line rate on the remaining book value.
  • Written-down value: your chosen rate on the remaining book value.

Example

For ₹10 lakh over 5 years, year 1 is ₹1,90,000 straight line or ₹4,00,000 double declining.

Straight line: year 1

₹1,90,000

₹10,00,000 written off at 20.00% a year leaves a book value of ₹50,000 after 5 years.

Year 1
₹1,90,000, book value ₹8,10,000
Year 2
₹1,90,000, book value ₹6,20,000
Year 3
₹1,90,000, book value ₹4,30,000
Year 4
₹1,90,000, book value ₹2,40,000
Year 5
₹1,90,000, book value ₹50,000

Full-year depreciation from year 1; declining methods stop at the salvage value. Tax and company-law rules may differ.

ChangelogHow we test this calculatorEmbed this calculator

How this calculator works

  1. Step 1Depreciable amountcost − salvageThe part of the cost that wears out.
  2. Step 2Choose a patterneven or decliningThe same each year, or more in early years.
  3. Step 3Year by yearbook valueCost less depreciation so far.

Depreciation spreads an asset’s cost over the years it is used. Straight line charges the same each year; declining methods charge a fixed percentage of what is left.

Worked example: the textbook printing press

Double declining balance on a 58,000 press (OpenStax)
Each year
40% × opening book value, not below salvage
  • CostPurchase, shipping and setup 58,000
  • SalvageValue after 5 years 10,000
  1. Year 140% of 58,00023,200
  2. Year 240% of 34,80013,920
  3. Year 340% of 20,8808,352
  4. Year 440% of 12,528, capped at salvage2,528
  5. Year 540% of 10,000, capped at salvage0
  6. Total48,000

In year 4 only 2,528 is allowed, because book value has reached the 10,000 salvage value. Nothing is charged in year 5.

Three methods, one machine

  • Straight line₹1,90,000The same every year.
  • Double declining₹4,00,00040% of the opening value.
  • WDV at 15%₹1,50,00015% of the opening value.
  • Straight line₹50,000
  • Double declining₹77,760
  • WDV at 15%₹4,43,705
Book value after 5 years

A low WDV rate can leave the book value well above salvage at the end of the useful life.

Assumptions and limits

  • Full yearsNo half-year or days-used rule.
  • Salvage floorDeclining methods stop at salvage.
  • Not tax ratesCheck the rates your rules set.
  • No units methodDepreciation by use is not covered.

Depreciation spreads an asset's cost over its life. Other tools judge whether the purchase pays back.

To see how long an investment takes to repay its cost, use the payback period calculator. The ROI calculator gives the overall return, and the break-even calculator the sales needed to cover costs.

Common mistakes

  • Mistake: Leaving delivery and installation out of the cost.

    Instead: Include every cost to get the asset ready.

  • Mistake: Taking declining depreciation below salvage.

    Instead: Stop once book value reaches salvage.

  • Mistake: Deducting salvage before a declining rate.

    Instead: Apply the rate to the full book value.

Checking the method

A separate script re-works every schedule in exact fractions from the closed-form book value, and reproduces the OpenStax example.

Read how we test our calculators, or browse more money calculators.

Frequently asked questions

How is straight-line depreciation calculated?

(Cost − salvage) ÷ life. ₹10 lakh with ₹50,000 salvage over 5 years is ₹1,90,000 a year.

What is double declining balance?

Twice the straight-line rate on the remaining book value. Year 1 for the same machine is ₹4,00,000.

What is the written-down value (WDV) method?

A fixed rate on the opening book value each year. At 15%, the machine’s book value after 5 years is ₹4,43,705.

Can depreciation go below the salvage value?

No. In the OpenStax example, year 4 is capped at 2528 and year 5 is 0.

Does it use income-tax depreciation rates?

No. Enter the rate the rules that apply to you set; tax rules may also change part-year treatment.

Sources and methodology

The formulas are standard time-value-of-money results. We check every figure against golden values worked out independently, by closed form and by month-by-month simulation; see the methodology.

Written and maintained by Nitin Raturi, a software engineer (about the author). Last reviewed 4 Nov 2026; next review due by . Found an error? Tell us.

Changelog

  • : Initial release.