Depreciation Calculator
Calculate asset depreciation using Straight Line Method (SLM) and Written Down Value (WDV) method. Includes year-by-year depreciation schedule table.
Enter values and click Calculate Depreciation to see results
Formula
What Is Depreciation?
Depreciation is the accounting method of allocating the cost of a tangible asset over its useful life. It reflects the wear and tear, obsolescence, or decline in value of the asset over time.
SLM vs WDV Methods
Straight Line Method (SLM):
Annual Depreciation = (Asset Cost − Salvage Value) / Useful Life
Depreciation Rate = (Annual Depreciation / Asset Cost) × 100
Written Down Value (WDV):
Year N Depreciation = Book Value at Start of Year × WDV Rate%
New Book Value = Old Book Value − Depreciation
Indian Income Tax Depreciation Rates
Under the Indian Income Tax Act, common WDV depreciation rates include:
- Buildings: 10%
- Furniture & Fittings: 10%
- Plant & Machinery (general): 15%
- Motor Vehicles: 15%
- Computers & Software: 40%
- Intangible Assets: 25%
Choosing a Method
SLM is simpler and spreads cost evenly. WDV better reflects how assets like vehicles and electronics lose value faster in early years. Businesses should choose based on asset type and tax regulations.
Related Tools
- ROI Calculator – Calculate return on investment
- Payback Period Calculator – Determine investment payback time
- Operating Margin Calculator – Calculate EBIT margin
Frequently Asked Questions
What is the difference between SLM and WDV?
SLM (Straight Line Method) depreciates an equal amount every year. WDV (Written Down Value) applies a fixed percentage to the remaining book value, so depreciation is higher in early years and decreases over time.
Which method is used for Indian income tax?
The Indian Income Tax Act allows WDV method for most assets. Companies Act allows both SLM and WDV. WDV rates range from 5% to 40% depending on the asset category.
Is this calculator free, and do I need to sign up?
Yes, it is completely free with no sign-up. There are no usage limits and no paywalls.