What is straight-line depreciation?

Straight-line depreciation spreads the cost evenly over the asset's useful life. Annual depreciation = (Cost - Salvage Value) / Useful Life. It's the simplest and most common method.

When should I use declining balance?

Declining balance is ideal for assets that lose value faster in early years (like vehicles and technology). It applies a fixed rate to the remaining book value each year, resulting in higher depreciation early on.

What is sum-of-years' digits?

SYD assigns a decreasing fraction each year. Year 1 gets n/SYD, Year 2 gets (n-1)/SYD, etc., where SYD = n×(n+1)/2. It's also accelerated but less aggressive than declining balance.

What is salvage value?

Salvage value (residual value) is the estimated amount the asset will be worth at the end of its useful life. It's subtracted from cost to determine the depreciable base. A $10,000 asset with $2,000 salvage has $8,000 depreciable.

How does depreciation affect taxes?

Depreciation is a non-cash expense that reduces taxable income. Accelerated depreciation (declining balance, SYD) provides larger tax deductions in earlier years, improving cash flow through bigger early-year tax shields.

Depreciation Calculator

Calculate asset depreciation using three methods with a year-by-year schedule.

Asset Details

Asset Cost

₹

Original purchase price of the asset.

Salvage Value

₹

Estimated value at the end of useful life.

Useful Life

years

Expected lifespan of the asset.

Method

Straight-Line

Year 1 Depreciation

₹0

per year (first year)

₹0

Total Depreciable

5 yrs

Useful Life

Depreciation Schedule

Year	Depreciation	Accumulated	Book Value
0	—	—	₹50,000

Documentation

How It Works

Choose between three standard depreciation methods. Straight-line is most common for financial reporting. Accelerated methods (declining balance, SYD) are better for tax planning.

Formulas

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Frequently Asked Questions

How to Use

About the Depreciation Calculator

What it calculates

This depreciation calculator models key business metrics for startups and small companies. Calculate asset depreciation with straight-line, declining balance, and SYD methods.

When to use it

Use when forecasting runway, pricing, margins, or growth to support business planning.

Example

Adjust the inputs above to model your specific scenario with the Depreciation Calculator.

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Depreciation Calculator

₹0

₹0

5 yrs

How It Works

Formulas

About the Depreciation Calculator

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