Depreciation Calculator

Calculate depreciation (SL & WDV).

About this tool

Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. It represents the decline in the value of an asset due to wear and tear, obsolescence, or other factors. This Depreciation Calculator is a comprehensive tool that allows businesses and accountants to compute depreciation using several common methods, providing a year-by-year schedule of the asset's value. The calculator is organized into tabs for each method: 1. **Straight-Line (SLM):** This is the simplest method. It spreads the cost of the asset evenly over its useful life. You need to enter the asset's initial 'Cost', its 'Salvage Value' (the estimated residual value at the end of its life), and its 'Useful Life' in years. 2. **Written Down Value (WDV):** Also known as the declining balance method, this is an accelerated depreciation method. It applies a fixed depreciation rate to the book value of the asset each year. In addition to cost, salvage, and life, you must also provide the 'Depreciation Rate' as a percentage. 3. **Sum of the Years' Digits (SOYD):** This is another accelerated method that results in higher depreciation charges in the earlier years of an asset's life. It requires the 'Cost', 'Salvage Value', and 'Useful Life'. 4. **Units of Production:** This method links depreciation directly to the usage of the asset. You provide the 'Cost', 'Salvage Value', and the 'Total Production Capacity' of the asset in units. Then, you can add fields to enter the number of 'Units Produced Per Year'. After filling in the details for your chosen method and clicking 'Calculate', the tool generates a detailed 'Depreciation Schedule'. This table shows the opening balance, the depreciation expense for the year, and the closing balance for each year of the asset's useful life.