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Open Calculator โOverview
Depreciation is both an accounting concept and a tax strategy. It lets businesses reduce taxable income while accurately valuing assets.
The Formula
Annual Depreciation = (Cost โ Salvage Value) รท Useful Life
Standard formula used by professionals worldwide
Worked Example
Step-by-step
Vehicle 1,000,000 | Salvage 100,000 | 5 years โ 180,000/year depreciation
Key Concepts
- Accuracy: Results are as accurate as the inputs you provide
- Units: Always use consistent units throughout your calculation
- Verification: Double-check important calculations before making decisions
- Professional advice: For major financial, health, or structural decisions, consult a qualified professional
Privacy and Security
- All calculations run entirely in your browser
- No data is sent to any server
- No sign-up or personal information required
- Your data stays private โ always
Frequently Asked Questions
Can land be depreciated?
No โ land does not wear out or become obsolete.
Accelerated depreciation?
Methods like declining balance create larger early deductions, reducing tax burden sooner.
What assets qualify?
Physical assets with useful lives over one year โ vehicles, machinery, computers, buildings.