Depreciation Calculator
Calculate the annual depreciation of an asset (straight-line or declining).
Tip: Straight-line depreciation spreads the cost evenly; the declining method loads more into the early years.
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About this digital tool
The depreciation calculator shows how much value an asset loses each year: a car, equipment, business tools. Enter the initial cost, the salvage value and the useful life, and choose the method. With the straight-line method, annual depreciation = (cost − salvage value) ÷ years of life, the same every year. With the declining method, depreciation is larger in the early years and shrinks gradually.
It is used in accounting to spread the cost of an asset over its life, and by individuals who want to estimate the value of a car or equipment over the years. The rates and methods accepted for tax purposes are set by law. The result is an estimate and does not replace your accountant.
How to use
- Enter the asset cost and the salvage value.
- Set the useful life in years.
- Choose the method and see the depreciation table.
Frequently asked questions
Which depreciation method is better?
Straight-line for assets with even wear (buildings, furniture). Declining for those that lose value quickly (computers, cars). It also depends on tax rules.
How is straight-line depreciation calculated?
Subtract the salvage value from the cost and divide by the years of life. For a 1,000,000 lek asset, a salvage value of 100,000 and 9 years of life, annual depreciation is 100,000 lek.
What is the difference between the straight-line and declining methods?
Straight-line spreads the loss of value equally each year, while the declining method loads more into the early years, which better reflects assets that lose value fast.
What is salvage value?
It is the estimated value of the asset at the end of its useful life, the price you expect to sell it for or recover. It can also be zero.