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Free Online Depreciation Calculator
Every business asset loses value over time: laptops, vans, machines. In India, you have to track it for your books or taxes. This calculator does the math.
100%
Free to Use
Two
Calculation Methods
Instant
Accurate Results
Asset Cost
₹10,000
Annual Depreciation
₹1,800
Total Depreciation
₹9,000
Salvage Value
₹1,000
Depreciation Calculator
₹
%
Years
📐
Straight Line (SLM)
Formula: (Asset Cost − Salvage Value) ÷ Useful Life
Example: ₹1,00,000 over 10 years = ₹10,000/year
Depreciation stays constant every year.
Depreciation stays constant every year.
Declining Balance (WDV)
Formula: Current Book Value × Depreciation Rate
Example: ₹1,00,000 @ 15% = ₹15,000, next year ₹12,750
Depreciation shrinks yearly on the remaining balance.
Depreciation shrinks yearly on the remaining balance.
Annual Depreciation (Year 1)
₹45,000
Straight Line Method
Asset Cost
₹5,00,000
Salvage Value
₹50,000
Total Depreciation
₹4,50,000
Depreciation Rate
9.00%
📊 Asset Breakdown
90%
Depreciated
-
Total Depreciation₹9,000
-
Salvage Value₹1,000
-
Asset Cost₹10,000
Depreciation Schedule
Straight Line| Year | Opening Value | Depreciation | Closing Value |
|---|---|---|---|
| Total | - | ₹9,000 | ₹1,000 |
What is Depreciation?
Think about a delivery van you bought for ₹8 lakh. It won't be worth ₹8 lakh in five years — it's been on the road, parts have worn down, it's just older. Depreciation is the accounting term for putting a rupee figure on that decline.
Two reasons this actually matters, not just as a theory:
- Your books need to reflect what your assets are genuinely worth today, not what you paid for them years ago.
- The tax department lets you deduct depreciation from your income before it's taxed. Correct calculations help you avoid overpaying taxes or facing issues during tax assessments.
Depreciation Methods Explained
Two methods are used in India by the Depreciation value calculator, and this tool handles both.
Straight Line Method (SLM)
With SLM, the asset loses the exact same amount every single year, right down to its salvage value (what it's worth once its useful life is over).
Formula: (Cost of Asset − Salvage Value) ÷ Useful Life
Take a machine worth ₹5,00,000 with a salvage value of ₹50,000 and a 9-year useful life. It'll lose ₹50,000 a year, every year, until it hits that salvage figure.
Take a machine worth ₹5,00,000 with a salvage value of ₹50,000 and a 9-year useful life. It'll lose ₹50,000 a year, every year, until it hits that salvage figure.
Written Down Value (WDV) Method
WDV works differently — each year's depreciation is a percentage of whatever the asset is currently worth, not what it originally cost. So you lose more value in the early years, and less as time goes on.
Formula: Book Value at Start of Year × Depreciation Rate
A ₹60,000 laptop depreciating at 40% loses ₹24,000 in year one. But in year two, it's only ₹14,400 — because now you're taking 40% of ₹36,000, not the original ₹60,000.
A ₹60,000 laptop depreciating at 40% loses ₹24,000 in year one. But in year two, it's only ₹14,400 — because now you're taking 40% of ₹36,000, not the original ₹60,000.
Smart Depreciation Tips
Choose Method Wisely
Use SLM for assets that hold steady value, DDB for tech that goes obsolete fast, and UOP for machines where output matters more than time.
Companies Act Rates
Schedule II under the Companies Act 2013 sets useful life at 30-60 years for buildings, 15 years for machinery, and 3 years for computers.
Income Tax Rates
The Income Tax Act runs on WDV, with rates of 15% for plant & machinery, 10% for buildings, 40% for computers, and 15% for vehicles.
The 180-Day Rule
Buy an asset and use it for less than 180 days in the year? You only claim half the normal depreciation, not the full amount.
Blocks, Not Individual Assets
Tax law doesn't track each machine separately — similar assets sit together in one "block," and depreciation gets calculated on the block as a whole.
Land Stands Apart
Buildings and machinery depreciate over time, but not land. Keep land on a separate record so that it is not included in the depreciation calculations.
Depreciation Rate Chart
| Asset | Useful Life (Companies Act) | WDV Rate (Income Tax) |
|---|---|---|
| Computers & Software | 3 years | 40% |
| General Plant & Machinery | 15 years | 15% |
| Office Furniture & Fittings | 10 years | 10% |
| Motor Vehicles (Non-commercial) | 8 years | 15% |
| Buildings (Other than Factory) | 60 years | 5% |
Worth saying plainly: Schedule II picked up more flexibility in 2021, and income tax depreciation shifts to the new 2025 Act from next financial year, same rates, different section references. Check the latest notification before you file anything based on this.
Depreciation Glossary
Asset
Anything a business owns that has value and is used to generate income, like equipment, vehicles, or buildings.
Useful Life
How many years an asset is expected to remain usable before it's fully written off.
Residual Value (Salvage Value)
What an asset is estimated to be worth once its useful life ends.
Depreciable Amount
The cost of the asset minus its residual value. This is the portion that actually gets spread out as depreciation.
Written Down Value (WDV)
The asset's remaining value after subtracting depreciation claimed so far. Also the name of the declining-balance method used under Indian tax law.
Straight Line Method (SLM)
Spreads the depreciable amount evenly across each year of the asset's useful life.
Declining Balance Method
Applies a fixed percentage to the asset's remaining value each year, so depreciation is higher early on and smaller later.
Double Declining Balance (DDB)
A faster version of the declining balance method, using double the straight-line rate.
Units of Production Method
Ties depreciation to actual usage or output instead of time, common for machinery.
Block of Assets
A group of similar assets clubbed together under one depreciation rate for income tax purposes, instead of tracking each one separately.
180-Day Rule
If an asset is used for less than 180 days in the year it's bought, only half the normal depreciation can be claimed for that year.
Schedule II
The section of the Companies Act, 2013 that lists useful life for different asset categories, used for book depreciation.
Section 32
The part of the Income Tax Act that governs depreciation rates and rules for tax purposes.
Additional Depreciation
An extra deduction (20%) available on new plant and machinery for manufacturing businesses, on top of normal depreciation.
Accumulated Depreciation
The total depreciation charged on an asset from the day it was bought until now.
Net Book Value (NBV)
The asset's original cost minus accumulated depreciation — basically what it's worth on the books today.
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Frequently Asked Questions (FAQs)
What formula does a depreciation calculator actually use?
Depends on the method. SLM: (Cost − Salvage Value) ÷ Useful Life. WDV: current book value × the applicable rate.
Does the Income Tax Act require a specific method?
Yes, for most assets, it's the Written Down Value method, applied to a fixed rate for the asset's block.
What's the actual difference between WDV and SLM?
SLM spreads depreciation evenly, year after year. WDV front-loads it — you lose more value early on, less as the years go by.
Can I use this for a statutory audit?
It's a solid way to get a quick, accurate estimate. But for anything going into an actual audit or official filing, get a qualified accountant to check the final numbers.
Is depreciation worked out monthly or yearly?
Yearly, as a rule, though it's usually prorated for the days an asset was actually in use during the year it was bought or sold.
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