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Business Calculators

Declining Balance Depreciation Calculator

Verified formula Updated Jun 2026 Private — runs on your device

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₹
%
Verified formula Private

First year depreciation

₹20,000

Book value after year 1
₹80,000

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Declining Balance Depreciation Calculator

The Declining Balance Depreciation Calculator works out your first year depreciation, along with 1 related figure in an instant. Enter asset cost (book value) and depreciation rate and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the asset cost (book value).
  2. Enter the depreciation rate.
  3. Read off your first year depreciation, together with book value after year 1 — the calculator updates automatically, with no button to press.

Formula

The Declining Balance Depreciation Calculator uses the formula:

First year depreciation = Asset cost (book value) × Depreciation rate ÷ 100

Worked example

For example, with asset cost (book value) of ₹100,000 and depreciation rate of 2%, the first year depreciation is ₹20,000.

Inputs used
Asset cost (book value) ₹100,000
Depreciation rate 2%
Results
First year depreciation ₹20,000
Book value after year 1 ₹80,000

Results are estimates for educational use, not professional advice.

Key terms explained

Depreciation
The reduction in an asset's value over time as it is used or ages.

Frequently asked questions

A fixed rate is applied to the current book value each year. At 20% on 1,00,000, the first year's depreciation is 20,000, leaving 80,000.

Because the rate applies to a falling book value, the largest amounts come in the first years, matching assets that lose value quickly.

Apply the same rate to the new book value. Enter the reduced value as the cost to find the following year's depreciation.

Straight line spreads cost evenly. Declining balance front-loads it, giving larger deductions early in the asset's life.

Enter the asset cost (book value). Enter the depreciation rate. Read off your first year depreciation, together with book value after year 1 — the calculator updates automatically, with no button to press.

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