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Depreciation Calculator

Enter what the asset cost, what it will be worth at the end, and its useful life.

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The three methods

  • Straight-line: the same amount every year — (cost − salvage) ÷ life. Simple and widely used in financial statements.
  • Declining balance: a fixed percentage of the remaining book value each year (double declining = 2 ÷ life), so more is written off early. The schedule switches to straight-line when that becomes larger, and never goes below the salvage value.
  • Sum-of-the-years' digits: also front-loaded; year 1 uses life ÷ (1 + 2 + … + life) of the depreciable amount.

Book value

Book value = cost − accumulated depreciation. Vehicles, computers and machinery lose value fastest in the first years, which accelerated methods reflect.

Tax depreciation follows its own rules: in Pakistan, the Income Tax Ordinance sets initial and normal depreciation rates by asset class, which can differ from the accounting schedule. Ask your accountant which to use for tax returns.

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Works on mobileSame tool on your phone, tablet or desktop.

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