calculator for depreciation

🧮 Depreciation Calculator

Asset Cost (₹) Salvage Value (₹) Useful Life (in years)

 

What exactly is a depreciation calculator? You can use a tool called a “Depreciation Calculator” to figure out how much value is lost over time on something you own, like a car, machine, or computer.  When you buy something new, it costs a certain amount.  However, as you use it, its value decreases.  Depreciation refers to this decrease in value.  How does a calculator for depreciation work? The calculator accepts a number of details, including your purchase price (original price). How long you expect to use it (its useful life)

 And occasionally, how much you anticipate selling it for at the end (its salvage value) The calculator then tells you how much value your item loses each year.

 Why would you want to use one? To know how much your stuff is really worth after some years

 To help with taxes if you use the item for business

 To plan when to replace your stuff before it breaks down or becomes too old

 An easy illustration: Let’s say you bought a machine for $10,000.  You expect to use it for 5 years, and after 5 years, you think it will be worth $1,000.

 The machine loses $1,800 annually (10,000 minus $1,000), according to the calculator. It is therefore worth $8,200 after one year, $6,400 after two years, and so on. In summary: A depreciation calculator is like a friend who tells you how much money your possessions lose each year, so you won’t be surprised when their value falls.