Depreciation Calculator
Calculate the depreciation of an asset over its useful life using straight-line or declining balance methods.
Depreciation Schedule
What is Depreciation Calculator?
A depreciation calculator estimates how much an asset — like a car, laptop, or machinery — loses value over time. It supports straight-line and declining balance methods.
Depreciation matters for resale planning, business accounting, and tax deductions.
How does the Depreciation Calculator work?
Straight-line spreads the loss evenly across the asset's life.
Declining balance applies a fixed percentage to the remaining book value each year, matching how most assets actually lose value.
How to use the Depreciation Calculator?
- Enter the asset's purchase price.
- Enter its salvage value and useful life.
- Select the depreciation method.
- The calculator shows the annual depreciation and book value each year.
Example
Try the calculator with your own numbers
- Enter your values in the input fields above.
- Adjust the values to match your situation.
- The result updates instantly as you change the inputs.
Benefits of using the Depreciation Calculator
- Plan resale values accurately.
- Claim correct depreciation for tax.
- Budget for asset replacement.
Who should use the Depreciation Calculator?
- Individuals planning loans, investments, or retirement savings.
- Salaried employees estimating taxes, EMIs, and take-home pay.
- Small business owners tracking costs, margins, and cash flow.
- Students learning personal finance and investment concepts.
Tips for getting the most out of the Depreciation Calculator
- Use realistic return rates — past performance does not guarantee future returns.
- Re-run the calculation whenever your income, expenses, or goals change.
- Compare a few scenarios (conservative, moderate, aggressive) before making a decision.
Frequently Asked Questions
How fast do cars depreciate?
Cars typically lose 15-20% of their value in the first year and about 10-15% each year after.
Which depreciation method should businesses use?
The Income Tax Act prescribes the written-down value (declining balance) method for most business assets.
Planning your finances is easier when you can see the numbers clearly. Use this calculator regularly to stay on top of your goals and make informed decisions.
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