Asset Depreciation Calculator
Calculate straight-line prime cost and diminishing value asset write-offs.
Last reviewed by the myCalculator Editorial Team
Input Parameters
Calculation Results
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Formula & How Asset Depreciation Calculator Works
Depreciation spreads the cost of an asset over its useful life. Straight line deducts the same amount each year: (cost − salvage value) ÷ life. A $40,000 vehicle with a $10,000 salvage value over 5 years loses $6,000 a year. Diminishing value applies a fixed percentage to the remaining balance, so the deduction is largest in year one. The ATO's diminishing value rate is 2 ÷ effective life, which is 40% for a 5-year life, so year one is $16,000 on the full cost. Use the method and effective life that match the asset's tax rules, and confirm the details with your accountant.
- Enter Asset Purchase Cost ($): Input your target parameter value.
- Enter Estimated Salvage Value ($): Input your target parameter value.
- Enter Effective Useful Life (Years): Input your target parameter value.
- Enter Depreciation Method: Input your target parameter value.
- Apply Formula: Calculate using
Straight Line = (Cost - Salvage) / Life. - Review Results: View exact computed answers, metrics, and worked mathematical proofs.
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Frequently Asked Questions (FAQs)
Which method gives higher tax deduction in Year 1?
Diminishing value method yields higher initial write-offs.
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Authoritative Standards & Verified Reference Citations
Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:
Consumer guidance on mortgage borrowing capacity, compound interest formulas, and loan fees.
Official cash rate target announcements, monetary policy statements, and national economic statistical data.
Official U.S. Federal Funds Rate and comprehensive macroeconomic time-series data.
Key Eurozone interest rates, deposit facility rates, and monetary policy operations.
Residential mortgage serviceability buffer framework (3.0% stress test hurdle rate).
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