Depreciation Calculator · WDV & SLM

Depreciation calculator — WDV or SLM, with the full schedule.

Enter the asset cost, salvage value and useful life (or rate), pick Written Down Value or Straight Line, and get a year-by-year depreciation schedule instantly.

Updated July 2026
Built by CA Anil Agarwal

Method

Asset cost (₹)

Salvage / residual value (₹)

Default under the Companies Act, 2013 is often 5% of cost — check Schedule II for your asset class.

Specify by

Useful life (years)

Used to derive an implied WDV rate that runs the book value down to salvage value by the end of the life.

Result

₹4,75,000

Total depreciation over 10 years — WDV method (implied rate ≈ 25.89% p.a.)

Year	Opening value	Depreciation	Closing value
1	₹5,00,000	₹1,29,433	₹3,70,567
2	₹3,70,567	₹95,927	₹2,74,640
3	₹2,74,640	₹71,095	₹2,03,545
4	₹2,03,545	₹52,691	₹1,50,854
5	₹1,50,854	₹39,051	₹1,11,803
6	₹1,11,803	₹28,942	₹82,861
7	₹82,861	₹21,450	₹61,411
8	₹61,411	₹15,897	₹45,514
9	₹45,514	₹11,782	₹33,732
10	₹33,732	₹8,732	₹25,000

Note: This is an estimate for planning purposes. The Companies Act, 2013 (Schedule II) prescribes useful-life-based rates for financial reporting, while the Income-tax Act, 1961 uses block-wise WDV rates for tax depreciation — the two figures are usually different. Actual rates, additions during the year, and pro-rata rules for assets used less than 180 days can change the outcome. Verify with a Chartered Accountant before using these numbers in your books or tax return.

Let your books run the fixed-asset register.

TatvaBooks tracks additions, disposals, pro-rata days and both Companies Act and Income-tax Act depreciation from the same asset entry — no separate spreadsheet to maintain and reconcile at year-end.

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How it works

Two methods, one schedule.

Straight Line Method (SLM)

SLM charges the same depreciation amount every year: (cost − salvage value) ÷ useful life. It's simple, predictable, and commonly used where the asset's benefit is expected to be roughly even across its life — for example, buildings or furniture.

Written Down Value (WDV)

WDV applies a fixed rate% to the opening book value each year, so the depreciation charge is front-loaded — higher in early years, tapering off as the book value shrinks. This is closer to how many assets (vehicles, machinery, electronics) actually lose value, and is also the method the Income-tax Act uses for block-wise depreciation.

Companies Act vs Income Tax Act

The Companies Act, 2013 (Schedule II) requires depreciation based on the asset's useful life, bringing the book value down to a residual value (commonly 5% of cost) by the end of that life — for financial reporting. The Income-tax Act, 1961 instead groups similar assets into "blocks" and applies a prescribed WDV rate to the block (not the individual asset) for computing taxable income. The two will almost always produce different depreciation figures for the same asset, and that difference creates deferred tax. This calculator computes a general estimate for either method — it does not replace block-wise income-tax computation.

Where estimates can differ from your actual books

This calculator assumes a full year of use in every period. Real depreciation schedules also need to handle mid-year additions and disposals (pro-rata), the Income-tax Act's 180-day rule (half rate if used for less than 180 days in the year of purchase), asset-wise vs block-wise tracking, and impairment. Treat the output here as a planning estimate, and verify the applicable rate and method with a Chartered Accountant before finalising your books or return.

Frequently asked questions

Depreciation calculator — common questions.

What is the difference between WDV and SLM depreciation?

Under the Straight Line Method (SLM), the same amount is depreciated every year — (cost − salvage value) ÷ useful life. Under the Written Down Value (WDV) method, a fixed percentage is applied to the opening book value each year, so the depreciation charge is highest in the first year and reduces over time. Both methods bring the asset down to its salvage value by the end of its useful life, but the year-by-year charge (and hence profit) differs.

Which method does the Companies Act, 2013 require?

The Companies Act, 2013 (Schedule II) does not mandate a single method — it prescribes indicative useful lives for asset classes and lets a company choose either SLM or WDV, applied consistently. What it does require is that the asset be depreciated down to its residual value (commonly capped at 5% of original cost, though a company can justify a different rate) over the useful life.

Is depreciation for the Income Tax Act calculated the same way?

No. The Income-tax Act, 1961 uses block-wise WDV rates (all assets of a similar type, e.g. plant & machinery, are grouped into a 'block' and depreciated together at a prescribed rate — commonly 15% for plant & machinery, 10% for furniture, 40% for computers). This is different from the Companies Act's useful-life-based approach, so your books (Companies Act) and your tax return (Income-tax Act) will usually show different depreciation figures for the same asset. This calculator gives a general estimate — always verify the applicable block and rate with a Chartered Accountant.

What is salvage or residual value, and why does it matter?

Salvage value (also called residual value) is the estimated amount an asset would fetch at the end of its useful life. Depreciation is charged only on the depreciable amount — cost minus salvage value. Under the Companies Act, many companies use a default of 5% of original cost unless a technical justification supports a different figure. A higher salvage value assumption reduces the annual depreciation charge.

Does this calculator account for partial-year (pro-rata) depreciation?

No — this calculator assumes the asset is used for a full year in each period of the schedule. In practice, assets purchased or disposed of partway through a financial year attract pro-rata depreciation (and under the Income-tax Act, assets used for less than 180 days in the year of purchase get only half the normal rate). For an asset register that handles pro-rata additions, disposals and both books automatically, see how TatvaBooks manages fixed assets.

Books that track depreciation for you, both ways.

TatvaBooks maintains your fixed-asset register, computes Companies Act and Income-tax Act depreciation side by side, and feeds both straight into your financial statements and tax workings.

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