Depreciation Calculator
Work out depreciation and the book value each year by the straight-line, double declining balance or sum-of-the-years'-digits method.
Depreciation in year 1
Rs 200,000
- Total depreciation
- Rs 1,000,000
- Each year
- 16.67%
By the straight line method, Rs 1,200,000 falls to Rs 200,000 over 5 years, with Rs 200,000 in the first year.
How it's worked out
- Straight line
(Rs 1,200,000 − Rs 200,000) ÷ 5Rs 200,000
Depreciation schedule
| Year | Depreciation | Book value |
|---|---|---|
| Year 1 | Rs 200,000 | Rs 1,000,000 |
| Year 2 | Rs 200,000 | Rs 800,000 |
| Year 3 | Rs 200,000 | Rs 600,000 |
| Year 4 | Rs 200,000 | Rs 400,000 |
| Year 5 | Rs 200,000 | Rs 200,000 |
- Tax authorities set their own depreciation rates for tax returns; these methods are for accounts and planning.
The methods
Straight line: (cost − salvage) ÷ life · Double declining: book value × 2 ÷ life · SYD: (cost − salvage) × years left ÷ (1 + 2 + … + life)
Worked example
A Rs 1,200,000 asset with a Rs 200,000 salvage value over 5 years: straight line writes off Rs 200,000 a year; double declining balance writes off Rs 480,000 in year 1; sum of the years' digits Rs 333,333.
Questions people ask
How do I calculate straight-line depreciation?
(Cost − salvage value) ÷ useful life. A Rs 1,200,000 machine worth Rs 200,000 after 5 years depreciates Rs 200,000 a year.
What is double declining balance?
Each year's depreciation is twice the straight-line rate applied to the book value, so more is written off early. For a 5-year life the rate is 40%.
What is the sum-of-the-years'-digits method?
Depreciation shrinks each year in proportion to the years left: for 5 years, 5/15 of the depreciable cost in year 1, then 4/15 and so on.
About this calculator
Formula and rules last checked 25 October 2026Written and tested by the CalculatorDex teamReport a problem