Work out depreciation by the straight-line, written-down value (WDV), double-declining or sum-of-the-years' digits method, with a year-by-year schedule you can download. Any currency, with India's Income-tax rates and Companies Act useful lives built in.
How to use the depreciation calculator
- Choose your currency and a method: straight-line, declining balance (WDV), double-declining or sum of years' digits.
- Enter the asset's cost, its salvage (residual) value and its useful life. For WDV, type a rate or leave it empty to work it out from the salvage value.
- If you started using the asset during the year, choose how many months it was in use in the first year.
- Read the first year's depreciation and the schedule of book values, then download it as a CSV for Excel or Google Sheets.
Depreciation formulas
- Straight-line:
(cost − salvage) ÷ useful life every year. - Declining balance (WDV):
rate × book value at the start of the year; the rate that reaches the salvage value is 1 − (salvage ÷ cost)^(1 ÷ life). - Double-declining:
(2 ÷ life) × book value, never below the salvage value, switching to straight-line when that gives more. - Sum of years' digits:
(cost − salvage) × years left ÷ (1 + 2 + … + life).
Example: one asset, four methods
A machine costs 10,000, will be worth 1,000 after 5 years, and is used for full years. Each method writes off the same 9,000 in total, but at a different pace:
Depreciation each year by method.| Year | Straight-line | WDV at 36.9% | Double-declining | Sum of years' digits |
|---|
| 1 | 1,800 | 3,690 | 4,000 | 3,000 |
|---|
| 2 | 1,800 | 2,329 | 2,400 | 2,400 |
|---|
| 3 | 1,800 | 1,469 | 1,440 | 1,800 |
|---|
| 4 | 1,800 | 927 | 864 | 1,200 |
|---|
| 5 | 1,800 | 585 | 296 | 600 |
|---|
India: Income-tax rates and Companies Act lives
For your income-tax return, depreciation is worked out on the written-down value of each block of assets at the rates in Appendix I of the Income-tax Rules, with half the rate in the year of purchase if the asset is used for less than 180 days. Company accounts follow Schedule II of the Companies Act 2013 instead, which gives useful lives; companies then use straight-line or WDV over that life, with a residual value of up to 5% of cost. Open "India: Income-tax rates and Companies Act lives" in the calculator to fill these in.
Companies Act Schedule II lives and the matching yearly rates with a 5% residual value.| Asset | Life | Straight-line | WDV |
|---|
| Buildings (not factories), RCC frame | 60 years | 1.58% | 4.87% |
|---|
| Buildings (not factories), other than RCC frame | 30 years | 3.17% | 9.5% |
|---|
| Factory buildings | 30 years | 3.17% | 9.5% |
|---|
| Plant and machinery (general) | 15 years | 6.33% | 18.1% |
|---|
| Continuous process plant | 25 years | 3.8% | 11.29% |
|---|
| Furniture and fittings | 10 years | 9.5% | 25.89% |
|---|
| Motorcycles, scooters and mopeds | 10 years | 9.5% | 25.89% |
|---|
| Cars, buses and lorries (not on hire) | 8 years | 11.88% | 31.23% |
|---|
| Cars, buses, lorries and taxis run on hire | 6 years | 15.83% | 39.3% |
|---|
| Office equipment | 5 years | 19% | 45.07% |
|---|
| Servers and networks | 6 years | 15.83% | 39.3% |
|---|
| Desktops, laptops and other end-user devices | 3 years | 31.67% | 63.16% |
|---|
Sources: Companies Act 2013, Schedule II (MCA); Income-tax Act 2025, section 33, and the Income-tax Rules' Appendix I rates as summarised by ClearTax. Checked 7 October 2026. Rates can change in a Budget, so confirm them with your accountant.
Comparing costs? The profit margin calculator prices items for a target margin, and the GST calculator adds or removes GST.
Frequently asked questions
How do you calculate straight-line depreciation?
Subtract the salvage value from the cost and divide by the useful life in years. A 10,000 machine worth 1,000 after 5 years depreciates by (10,000 − 1,000) ÷ 5 = 1,800 a year, so its book value falls by the same amount every year to 1,000.
What is the written-down value (WDV) method?
Each year's depreciation is a fixed percentage of the book value at the start of that year, so it's highest in the first year and falls after that. To end at the salvage value after the useful life, the rate is 1 − (salvage ÷ cost)^(1 ÷ life). For a 1,00,000 asset with a 5,000 residual value over 5 years that's 45.07%, so year 1's depreciation is 45,072. Leave the Rate box empty to use it, or type your own rate.
How does double-declining balance depreciation work?
The rate is twice the straight-line rate, 2 ÷ life, applied to the book value. Salvage value isn't used in the rate, but depreciation stops when the book value reaches it. Over 5 years the rate is 40%: a 10,000 asset with no salvage value depreciates by 4,000, 2,400, 1,440, then switches to straight-line for the last two years (1,080 each), because that gives more.
What are the depreciation rates under India's Income-tax Act?
Depreciation is a percentage of the written-down value of each block of assets: residential buildings 5%, other buildings (offices, factories, shops) 10%, temporary structures 40%, furniture and fittings 10%, plant and machinery (general) 15%, motor cars (not run on hire) 15%, buses, lorries and taxis run on hire 30%, computers and computer software 40%, intangible assets (patents, trademarks, licences) 25%. An asset bought and put to use for less than 180 days in the year gets half the rate that year, so a 1,00,000 computer gets 20,000 (20%) in year 1. The Income-tax Act 2025, in force from 1 April 2026, kept these rules in section 33.
What useful lives does Schedule II of the Companies Act give?
Part C of Schedule II to the Companies Act 2013 sets useful lives, for example buildings (not factories), rcc frame 60 years, plant and machinery (general) 15 years, furniture and fittings 10 years, cars, buses and lorries (not on hire) 8 years, office equipment 5 years, desktops, laptops and other end-user devices 3 years. The residual value is normally at most 5% of the cost. With a 5% residual, a 3-year life means 31.67% a year on straight-line or 63.16% on WDV; a 10-year life 9.5% or 25.89%.
What if I started using the asset partway through the year?
Choose how many months it was in use in the first year. Straight-line and sum-of-years' digits then take part of a year's depreciation at the start and finish a year later: 12,000 over 3 years from mid-year gives 2,000, 4,000, 4,000, 2,000. The declining methods take the same share of the first year's rate. For India's 180-day rule, choose Half year.
