What is the Straight Line Method (SLM) of depreciation?

SLM spreads depreciation evenly over an asset's useful life. Annual Depreciation = (Cost - Salvage Value) / Useful Life. Suitable for assets that depreciate uniformly.

What is the Written Down Value (WDV) method?

WDV applies a fixed percentage on the book value at the start of each year, resulting in higher depreciation in early years and lower in later years. Widely used under Income Tax Act in India.

What is Double Declining Balance (DDB) depreciation?

DDB is an accelerated depreciation method that applies twice the SLM rate on the declining book value each year. It's commonly used in GAAP financial reporting for assets that lose value faster in early years.

Asset Details

Asset Name (optional)

Cost of Asset (₹)

₹

Salvage / Scrap Value (₹)

₹

Useful Life (Years)

Purchase Date (optional)

Depreciation Method

SLM

WDV

DDB

All 3

Straight Line Method (SLM)

Spreads depreciation equally over the asset's useful life. Best for assets with uniform usage.

Annual Dep = (Cost − Salvage) ÷ Life

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Free Online Depreciation Calculator – SLM, WDV & DDB

Calculate asset depreciation instantly using three standard accounting methods. Get a complete year-wise depreciation schedule for fixed assets like machinery, vehicles, computers, and buildings. Built by Sanle Tech Solutions.

SLM — Straight Line

Equal depreciation every year. Commonly used under Companies Act 2013. Simple and predictable.

WDV — Written Down Value

Higher early depreciation. Prescribed under Income Tax Act India. Rate applied on book value each year.

DDB — Double Declining

2× SLM rate on book value. Accelerated method used in US GAAP. Maximizes early deductions.

Frequently Asked Questions

Which depreciation method should I use?

Use SLM for assets with uniform wear (buildings, furniture). Use WDV for Indian income tax filings — it is the prescribed method under the IT Act. Use DDB for US GAAP compliance or when you want maximum early-year deductions.

What is salvage value in depreciation?

Salvage value (also called scrap or residual value) is the estimated value of an asset at the end of its useful life. For SLM and DDB, depreciation stops once book value reaches salvage value. For WDV, it can asymptotically approach but never reach zero.

How is WDV rate calculated?

WDV Rate = 1 − (Salvage / Cost)^(1/Life) × 100. The Income Tax Act prescribes fixed block rates: 15% for most plant & machinery, 30% for computers & software, 40% for motor vehicles. You can enter any custom rate above.

All calculations run entirely in your browser. No data is sent to any server. Results are indicative — consult a qualified accountant for tax filings.