Depreciation Calculator as per Companies Act 2013
Compute depreciation on any asset under Schedule II using the Straight-Line Method (SLM) or Written-Down Value (WDV) method. Handles part-year proration in the year of purchase, residual value caps, and generates a complete year-wise schedule you can export.
Inputs
Depreciation schedule
| Year | Opening | Depreciation | Accumulated | Closing |
|---|---|---|---|---|
| 1 | ₹1,00,000 | ₹39,303.78 | ₹39,303.78 | ₹60,696.22 |
| 2 | ₹60,696.22 | ₹23,855.91 | ₹63,159.69 | ₹36,840.31 |
| 3 | ₹36,840.31 | ₹14,479.64 | ₹77,639.32 | ₹22,360.68 |
| 4 | ₹22,360.68 | ₹8,788.59 | ₹86,427.91 | ₹13,572.09 |
| 5 | ₹13,572.09 | ₹5,334.34 | ₹91,762.26 | ₹8,237.74 |
| 6 | ₹8,237.74 | ₹3,237.74 | ₹95,000 | ₹5,000 |
* Depreciation in the year of purchase is prorated on the days the asset was available for use.
How depreciation is calculated under the Companies Act, 2013
Unlike the Income Tax Act, the Companies Act 2013 does not prescribe fixed depreciation rates. Schedule II prescribes the useful life of each class of asset, and depreciation is the systematic allocation of the depreciable amount (cost minus residual value) over that life.
SLM: Annual depreciation = (Cost − Residual) ÷ Useful lifeWDV: Rate = 1 − (Residual ÷ Cost)^(1 ÷ Useful life)Reverse (WDV): Cost = BV ÷ [(1 − R·f)·(1 − R)^(n−1)]
Frequently asked questions
How is depreciation calculated under Companies Act 2013?
Schedule II prescribes useful lives, not rates. Depreciation is the depreciable amount (cost minus residual value, usually 5% of cost) allocated over that useful life — evenly under SLM, or at rate 1 − (residual ÷ cost)^(1 ÷ life) under WDV.
What is the WDV rate formula as per Companies Act 2013?
Rate = 1 − (Residual value ÷ Cost)^(1 ÷ Useful life). For an asset costing ₹1,00,000 with 5% residual and 6-year life, the rate works out to about 39.30% per annum.
Is depreciation prorated in the year of purchase?
Yes. Depreciation is charged on a pro-rata basis for the number of days the asset was available for use during that financial year. This calculator applies the day-wise factor automatically.
Can I calculate original cost from the current book value?
Yes — use the Reverse tab. Given book value, periods elapsed, useful life, residual percentage and method, it solves back to the original cost, which is useful when reconstructing a fixed asset register.
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