Depreciation Calculator

Methodology, interpretation & sources

Purpose. Calculates asset depreciation using Straight-Line or Double-Declining Balance methods, with a full year-by-year schedule.

Method overview. Straight-line depreciation spreads the depreciable amount evenly over the useful life: (asset cost − salvage value) ÷ useful life. Double-declining balance is an accelerated method that applies roughly twice the straight-line rate to the opening book value each year, while respecting the selected salvage floor.

Worked example. If an asset costs Rs. 1,000,000, has a Rs. 100,000 salvage value and a five-year useful life, straight-line depreciation is Rs. 180,000 per year. Under double-declining balance the initial rate is 40% (2 ÷ 5), so first-year depreciation is Rs. 400,000 before later-year adjustments and the salvage-value limit.

Interpretation. The schedule is an accounting model, not a market-value forecast. Book value can differ substantially from resale value. For statutory accounts or tax depreciation, use the method and rates required by the applicable accounting framework and tax rules.

How to use the result. Start with source data you can verify, enter values on a consistent unit and time basis, and record the assumptions used. The main inputs on this page include Asset Cost, Salvage Value, Useful Life (Years), Your Name, Email, Company Name. Re-run the calculation when those assumptions change rather than carrying an old result forward.

Decision use. Use this tool for scenario planning and comparison rather than as a substitute for professional financial advice. Financial assumptions can change the result materially, so test more than one scenario instead of relying on a single output.

Limitations. Check the time period, rate convention, compounding assumption and cash-flow timing before interpreting the result. Small changes in rates or timing can have a large cumulative effect.

Primary references. Use the current edition/version that applies to your jurisdiction and organization:

• State Bank of Pakistan (financial information)
• Investor.gov — financial calculators and investing basics

Editorial note. Prepared and maintained by Impact Tech Solutions. Editorially updated 28 September 2026. No individual professional credential is claimed on this page; high-consequence, statutory, tax, engineering or health decisions should be independently verified against the current primary source and, where required, a qualified professional.