Calculating your current book value is straightforward once you know the Book Value formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Book Value Calculator.
What is Book Value?
The Book Value calculation tells you your current book value from a few simple inputs. The figure you are solving for here is the current book value, expressed in INR.
The Book Value formula
The core formula is:
Current book value = Original cost - Annual depreciation × Years elapsedHere is what each input means:
- Original cost — a money amount. Example: ₹1,00,000.
- Annual depreciation — a money amount. Example: ₹18,000.
- Years elapsed — a number. Example: 2.
How to calculate it step by step
- Write down the original cost (for example, ₹1,00,000).
- Write down the annual depreciation (for example, ₹18,000).
- Write down the years elapsed (for example, 2).
- Apply the formula above to get your current book value.
- Double-check the result with the Book Value Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Original cost | ₹1,00,000 |
| Annual depreciation | ₹18,000 |
| Years elapsed | 2 |
| Current book value | ₹64,000 |
| Accumulated depreciation | ₹36,000 |
With original cost of ₹1,00,000, annual depreciation of ₹18,000 and years elapsed of 2, the current book value works out to ₹64,000.
Example 2
With original cost of ₹2,00,000, annual depreciation of ₹18,000 and years elapsed of 2, the current book value works out to ₹1,64,000.
| Result | Value |
|---|---|
| Current book value | ₹1,64,000 |
| Accumulated depreciation | ₹36,000 |
Example 3
With original cost of ₹50,000, annual depreciation of ₹18,000 and years elapsed of 2, the current book value works out to ₹14,000.
| Result | Value |
|---|---|
| Current book value | ₹14,000 |
| Accumulated depreciation | ₹36,000 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
Prefer not to do the maths by hand? — the Book Value Calculator does it instantly, for free, with the formula and a worked example built in.
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