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Depreciation Calculator

This depreciation calculator shows how much a business asset depreciates in a given year, comparing the straight-line method (even, predictable) against double-declining balance (front-loaded). Enter your asset details to see the depreciation and remaining book value.

₹5,00,000

The full purchase price of the asset.

₹50,000

What the asset is expected to be worth at the end of its useful life.

10 yrs

The number of years the asset is expected to be in service.

1 yrs

Which year of the asset's life to show depreciation for.

Straight-line spreads the cost evenly; double-declining balance front-loads it.

₹45,000

Accumulated depreciation₹45,000
Book value at end of year₹4,55,000

Frequently asked questions

Which method should I use?+

It depends on the purpose — straight-line is simpler and often required or preferred for financial reporting; accelerated methods like double-declining balance are common for tax purposes since they front-load deductions. Consult your accountant for what's appropriate in your jurisdiction and asset type.

Does depreciation affect cash flow?+

No — depreciation is a non-cash accounting expense. It reduces reported profit (and therefore taxable income) but doesn't involve any actual cash leaving the business in the year it's recorded.

What happens after the useful life ends?+

The asset's book value should be at (or near) its salvage value and generally isn't depreciated further, even if it remains in service — though it may still have real market or scrap value beyond its accounting book value.

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