The following calculator is for depreciation calculation in accounting. It takes straight line, declining balance, or sum of the year' digits method. If you are using double declining balance method, just select declining balance and set the depreciation factor to be 2. It can also calculate partial-year depreciation with any accounting year date setting.
▼ Modify The Values and Click the Calculate Button to use
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What is Depreciation?
There aren't many calculators that will help you find the realm value or asset of anything. But now using the depreciation calculator you cannot only research using its straight forward lines solution to learn the whole sum of the each year's digit balance. This fixed asset involves furniture, buildings, machinery, lands, office equipments and so much more. You will be glad to know that this calculator gives you three different methods to run the estimate of quick the value of certain assets decreases over the period of time.
Here are three common methods you can use for depreciation calculator:
Unit of production
Double decline balance
All three of them combined would give you the perfect digit depreciation which you can decide that suits best for your small business.
Just imagine one thing when you bought a mobile phone at a particular price and after few months you suddenly decide to sell in on a certain site like eBay. The main problem is that you are no sure what price you should go for. The value of the phone has been depreciated over the last months and so it is without a doubt worth less now. But still how much this one is worth exactly, the only way to find it is to use this calculator.
How to Use Depreciation Calculator?
One of the major point is that depreciation calculator gives you three methods to determine the value of your asset when some time has been passed. But in order to do that you need to find perfect depreciation formula using with different symbols to get your answer. Here are the following steps you need to follow such as,
Formula name for using depreciation calculator: OV -M * [(OV - RV) / N]
N stands for the lifetime asset
OV stands for the original value of the certain asset
RV gives you the residual value of any asset, if it has gone to zero value
M stands for the all number of years which has passed between the asset's true initial value
1) First you need to write the time period when you purchased the fixed asset
2) Then type the value you want to sell it for
3) Write down the residual value of the asset
4) You will get the annual depreciation expense of asset
Working of Depreciation Calculator:
Once you begin to utilize this amazing calculator you will be able to find all those three methods pretty helpful that will substantially give you the real value of your asset in possession. Also one thing you need to keep in mind that tax system does not allow you to use whole sum but you need to use it in per unit depreciation way for any model you own it will give you the right values form the market.
With this way you certainly know and gain knowledge about the importance of accounting records to help maintain your income statements and balance sheets.