Fixed Asset Depreciation Calculator
Calculate fixed asset depreciation using the straight-line or declining-balance method. Determine annual depreciation, accumulated depreciation, net book value and the asset’s depreciation schedule.
Asset Details
Example: ₹120,000 — original purchase cost of the asset.
Example: ₹12,000 — estimated value at the end of useful life.
Example: 6 years — expected period of use.
Example: Straight-Line — depreciates the depreciable amount equally each year.
Example: 20% — used only when the declining-balance method is selected. Leave blank for Straight-Line.
Example: 2 years — number of completed depreciation years.
Enter 0 for an asset at the start of its depreciation period. This calculator assumes full-year depreciation and does not apply a partial-year convention.
Practical Example
A business purchases equipment for ₹120,000. Its estimated residual value is ₹12,000, and its useful life is six years. Calculate depreciation after two completed years using the straight-line method.
Depreciable amount = ₹120,000 − ₹12,000 = ₹108,000
Annual depreciation = ₹108,000 ÷ 6 = ₹18,000
Accumulated depreciation after two years = ₹18,000 × 2 = ₹36,000
Net book value after two years = ₹120,000 − ₹36,000 = ₹84,000
Formulas Used
Straight-line: Annual depreciation = (Asset cost − Residual value) ÷ Useful life.
Declining-balance: Annual depreciation = Opening book value × Declining-balance rate, capped at the amount needed to preserve residual value.
Accumulated depreciation: Total depreciation recorded across completed years.
Net book value: Asset cost − Accumulated depreciation.
Note: This calculator is for general planning and accounting estimates. Actual depreciation policies may require partial-year calculations, impairment adjustments, component accounting, or jurisdiction-specific tax and accounting rules. The declining-balance method uses the annual rate you enter; it does not automatically switch to straight-line depreciation in later years.