Overview

The Depreciation Calculator computes the periodic decline in value of tangible assets such as equipment, vehicles, and buildings. It supports major methods including straight-line and declining balance, essential for tax reporting and financial statement preparation. It aids in asset management and tax optimization.

Formula

Straight-Line: Annual Depreciation = (Acquisition Cost − Salvage Value) ÷ Useful Life
Declining Balance: Annual Depreciation = Book Value at Start × Depreciation Rate
Rate = 1 − (Salvage Value ÷ Acquisition Cost) ^ (1 ÷ Useful Life)

How to Use

1. 1Enter the acquisition cost of the asset.
2. 2Enter the salvage value (expected value after useful life).
3. 3Enter the useful life in years.
4. 4Select the depreciation method (straight-line or declining balance).
5. 5Click 'Calculate' to see the depreciation schedule and book values.

Tips

• ✔Useful life standards vary by asset type under Korean tax law.
• ✔Straight-line depreciates equally each year; declining balance front-loads depreciation.
• ✔Declining balance may offer greater early-year tax savings.
• ✔Small businesses may qualify for immediate expensing of certain assets.
• ✔Depreciation is a non-cash expense — add it back in cash flow analysis.

FAQ