Depreciation Calculator with Schedule
Straight-line, reducing balance, sum-of-years and units of production, with a full year-by-year schedule.
Formula
straight line = (cost − salvage) / life
Tips
- Straight line spreads the cost evenly and suits assets that wear out steadily, such as fixtures or buildings.
- Reducing balance front-loads the charge and better matches assets that lose value fastest when new, such as vehicles and IT equipment.
- Accounting depreciation and tax relief are different things. In the UK, capital allowances — not your depreciation policy — determine the tax deduction.
- No method may take the book value below the residual value, which is why the final year is often a smaller charge.
Frequently asked questions
Does this give me my tax deduction?
No. Depreciation is added back for UK corporation tax and replaced by capital allowances, such as the Annual Investment Allowance or writing-down allowances. Ask your accountant which applies to the asset.