Depreciation Calculator
Year-by-year depreciation by WDV or straight line.
Method
Often 5% of cost under the Companies Act.
Used less than 180 days in year 1?
Your result
—
Enter your numbers to see the result.
This depreciation calculator creates a year-by-year depreciation schedule for an asset using the written down value (WDV) method or the straight-line method (SLM). Pick a common income-tax rate (such as 40% for computers or 15% for cars and machinery), enter the cost and years, and it shows depreciation, accumulated depreciation and book value each year, including the half-rate rule for assets used less than 180 days in the first year.
What is a Depreciation Calculator?
Depreciation spreads the cost of an asset, such as a computer, vehicle or machine, over the years it is used. It reduces taxable profit each year and shows the asset’s falling value in your books.
The written down value (WDV) method applies a fixed percentage to the remaining value each year, so depreciation is higher early on; income tax uses this method on blocks of assets. The straight-line method (SLM) spreads the cost evenly over the useful life and is common in company accounts. This depreciation calculator produces a schedule for either.
How does the Depreciation Calculator work?
For WDV, each year’s depreciation is the opening value times the rate. For SLM, it is (cost − salvage value) ÷ useful life. If the asset is used for less than 180 days in the year it is bought, income tax allows only half the rate in that year, which the calculator applies when selected.
How to use the Depreciation Calculator step by step
- Enter the asset cost.
- Choose WDV or straight line.
- Pick a rate preset or enter a custom rate; for SLM, enter useful life and salvage.
- Choose how many years to show.
- Mark if the asset was used less than 180 days in year 1.
- Download the schedule for your books.
Depreciation Calculator example with real numbers
A consultant buys a ₹1.2 lakh laptop in May and claims depreciation under income tax at the 40% rate for computers.
| Example input | Value |
|---|---|
| Asset cost | ₹1,20,000 laptop |
| Method | WDV at 40% |
| Years | 6 |
| Used under 180 days in year 1 | No |
| Example output | Value |
|---|---|
| Book value after 6 years | ₹5,599 |
| Year 1 depreciation | ₹48,000 |
| Method | Written down value at 40.0% |
| Half-rate in year 1 | No |
Year 1 depreciation is ₹48,000. After six years the depreciation calculator shows a written down value of ₹5,599. Had the laptop been bought after early October, only half the rate would apply in the first year.
Key features of this Depreciation Calculator
- WDV and SLM
- Income-tax rate presets
- Half-rate rule
- Accumulated depreciation
- CSV schedule
Who should use the Depreciation Calculator?
Who is this Depreciation Calculator for?
- Small business owners
- Freelancers claiming depreciation
- Accountants and CA students
- Startups preparing financials
Practical use cases
- Preparing a depreciation schedule for tax
- Comparing WDV and SLM
- Planning asset purchases before year-end
- Checking book value before selling an asset
Key benefits
- Both methods: one tool.
- Tax-aware: common block rates and half-year rule.
- Clear: full schedule.
- Export: CSV.
Tips for better results
- Income tax depreciation is calculated on the block of assets, not each item separately.
- Buying before the 180-day cut-off in a year allows full-rate depreciation.
- Keep invoices for every asset.
- Companies follow Schedule II useful lives for books, which may differ from tax.
Common mistakes to avoid
- Using SLM for income tax.
- Ignoring the half-rate rule.
- Depreciating land, which is not allowed.
- Mixing book and tax depreciation.
Limitations of this Depreciation Calculator
- It treats each asset separately, not as a block.
- Additional depreciation and sale adjustments are not included.
- Rates shown are common examples; check the current schedule.
Depreciation Calculator vs other ways to calculate
| Method | Pattern | Used for |
|---|---|---|
| WDV | Higher early, lower later | Income tax |
| SLM | Same every year | Company books (often) |
| Units of production | Based on usage | Specific assets |
For profitability, see the break even calculator. For cash planning, use the cash flow calculator.
Privacy and data handling
This Depreciation Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
Depreciation Calculator FAQs
What is the WDV method?
Depreciation is a fixed percentage of the asset’s remaining value each year.
What is the depreciation rate on computers?
40% under income tax for computers and software.
What is the depreciation rate on cars?
Generally 15% under income tax for motor cars used for business.
What is the 180-day rule?
If an asset is used for less than 180 days in the year of purchase, only half the normal rate is allowed that year.
WDV or SLM: which is better?
WDV gives higher deductions early; SLM spreads them evenly. Income tax requires WDV for most assets.
Can I depreciate land?
No. Land is not depreciable.
Related tools
Sources and references
We checked the method and the current figures used in this Depreciation Calculator against these official and primary sources:
- Income Tax Department of India
- Ministry of Corporate Affairs
- Institute of Chartered Accountants of India
Written and reviewed by the Qorico Team
