Depreciation Calculator

Cost of Asset

Salvage Value

%

Duration (Years)

Years

Depreciation Method

Depreciation per year

Calculation

What is a Depreciation Calculator?

Depreciation is an accounting concept that allows you to calculate the amount of money that your assets could lose over a period of time. This can be useful if you want to determine the true value of your assets. A depreciation calculator is a tool used to calculate the depreciation that has occurred on an asset since it was purchased.

You can use the Navi Depreciation Calculator to determine how much money you could get back from your investment after depreciation in assets such as vehicles, machinery, or equipment.

How Does a Depreciation Calculator Work?

A depreciation calculator would take into account the asset cost, time of purchase, salvage value (estimated worth of asset at the end of its useful life), and depreciation year to estimate the total depreciation.

You can employ the straight-line method, declining balance method, or sum of the year’s digits to calculate your depreciation. Use Navi’s depreciation calculator to check the depreciation value in a quick and hassle-free manner.

Here’s how you can calculate depreciation on your assets

Select the depreciation method

Select the asset cost

Select the salvage value

Select the depreciation year

And that’s it! Your depreciation value will be displayed in a matter of seconds.

What is the Formula to Calculate Depreciation?

Depreciation can be calculated using several different methods.

1. Straight line depreciation method

Depreciation per year = Asset cost – Salvage value/Useful life

For example, assume that the total cost of buying a photocopy machine for your office was Rs 50,000. At the end of its useful life of 5 years, the asset’s salvage value was Rs 15,000. Then, the depreciation expense would be:

(Rs 50,000 – Rs 15,000) / 5 = Rs 7,000
Thus, the photocopy machine gets depreciated by Rs 7,000 each year of its useful life.

2. Declining balance method

Depreciation per year = Book value X Depreciation rate

For example, assume that the current book value of an asset bought for the company is Rs 10,000. It has a 10 year useful life, has a salvage value of Rs 1,000, and depreciates at 30% each year.
Thus, the asset would depreciate by Rs 2,700 in the first year, by Rs 1,890 in the second year and so on.

3. Sum of the year’s digit depreciation method

Depreciation = (Asset cost – Salvage value) X factor

1st year: factor = n/1+2+3+…n
2nd year: factor = n – 1 /1+2+3+…n

Calculating such manually could be tasking and may not give you accurate results. A better alternative would be to use the Navi Depreciation Calculator.

Advantages of Using the Navi Depreciation Calculator

Here are some of the advantages of Navi’s depreciation calculator

User-friendly design

Navi’s depreciation calculator is easy to use and navigate

Quick and accurate results

Calculate the exact depreciation value in a matter of seconds

Helps you plan better

Helps you better manage your business expenses

Frequently asked questions

Depreciation is the process of allocating the cost of an asset over its useful life. In other words, it’s a way to estimate how much you’ll get back from your investment when you re-sell it. Depreciation is not just for cars and houses—it can be applied to any asset.
Depreciation value can help you make better financial decisions about how much money should go into owning each item at different points in time. It also gives you an actual estimate of your asset value.
Depreciation is a non-cash expense, but it’s a real cost. It’s important to note that depreciation does not apply only to tangible assets like machinery and equipment; intangible assets can also experience depreciation over time.
There is no minimum amount of depreciation as such. Each asset’s depreciation is accounted for differently depending on several factors.
Depreciation can be recorded monthly or annually, depending on the individual or business need.
Disclaimer : Navi does not guarantee accuracy, completeness or correct sequence of any of the details provided therein and therefore no reliance should be placed by the user for any purpose whatsoever on the information contained / data generated herein or on its completeness / accuracy. The use of any information set out is entirely at the User’s own risk.

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