What is a Depreciation Calculator?
A Depreciation Calculator is a free online tool that helps you calculate asset depreciation using straight line method (slm) or written down value (wdv) method with year-by-year book value table. FinCalc Pro offers India's most accurate Depreciation Calculator with instant results, detailed charts, and step-by-step breakdowns — completely free with no login required.
Depreciation Calculator Formula
SLM depreciates equal amount each year. WDV (diminishing balance) depreciates more in early years, less later. Companies Act specifies rates for financial statements; Income Tax Act specifies different (usually higher) rates for tax computation.
How to Use Depreciation Calculator
- Enter the asset's original cost (purchase price + installation)
- Enter salvage value (scrap value at end of useful life)
- Enter useful life in years
- Select depreciation method (SLM or WDV) and rate
- Click Calculate to see annual depreciation and year-by-year book value table
Depreciation Calculator — Example
Asset Cost: ₹10,00,000 | Salvage: ₹1,00,000 | Life: 10 yrs | SLM → Depreciation: ₹90,000/yr | WDV at 20% → Year 1: ₹2,00,000 | Year 5: ₹65,536
Benefits of Using Depreciation Calculator
- Correctly calculate depreciation for financial statements
- Separate book depreciation vs tax depreciation for compliance
- Plan asset replacement timing based on book value
- Identify difference between SLM and WDV for profit calculation
Frequently Asked Questions — Depreciation Calculator
What is the difference between SLM and WDV depreciation?
SLM (Straight Line Method) charges equal depreciation each year. WDV (Written Down Value/Diminishing Balance) charges higher depreciation in initial years and lower in later years. WDV is more tax-efficient as it front-loads deductions. Most companies use WDV for IT purposes and SLM for books.
What depreciation rates does the Income Tax Act specify?
Common IT Act depreciation rates: Plant & Machinery: 15% WDV | Computers: 40% WDV | Vehicles: 15% WDV | Furniture: 10% WDV | Buildings (RCC): 10% WDV | Electrical fittings: 10% WDV. Some assets qualify for 100% depreciation in year 1 (energy-efficient equipment).
Can I claim full depreciation on an asset bought late in the year?
If an asset is put to use for less than 180 days in the year of purchase, only 50% of the normal depreciation can be claimed for that year. Full depreciation applies from the following year. For example, an asset bought and used on December 1 (less than 180 days): claim 50% depreciation in that year.