Depreciation Calculator is a ready-to-use excel template to calculate Straight-Line as well as Diminishing Balance Depreciation on Tangible/Fixed Assets.
The template displays the depreciation rate for the straight-line method based on scrap value. Moreover, it displays the year on year amount of depreciation for as per the Diminishing Balance method.
Straight Line Depreciation means:
“Straight Line method depreciates an asset uniformly over the period of its usability. The Straight-line method of depreciation applies even cost throughout the life of the fixed asset.”
Diminishing Balance Depreciation means:
“The declining balance method reduces an asset’s value by the amount it depreciated in the previous years. It calculates the new depreciation based on that lower value. Hence, it is given the name as the diminishing balance method.”
Depreciation Calculator Excel Template
We have created a simple and easy Depreciation Calculator with predefined formulas. Just enter a few values and it will automatically calculate depreciation by both the methods.
Click here to download the Depreciation Calculator Excel Template.
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You can also download other templates like Cash Flow Statement, Trial Balance and Profit and Loss Account.
Let us understand the contents of this template and how to use it.
Contents of Depreciation Calculator Excel Template
This template consists of 2 sections: Straight-Line Depreciation Calculation and Diminishing Balance Depreciation Calculation.
Straight-Line Depreciation Calculation
In this section, the template calculates the straight-line depreciation. It is calculated based on Asset value, scrap value and life of an asset.
Here, asset value is the asset price in addition to the additional costs associated with an asset. These costs include fixtures, transportation, insurance, etc.
Insert the Asset Cost and Additional Asset Cost in the given cells and it will automatically calculate the total Asset Price for you.
Enter the Scrap Value and Life Span for the asset and 0 if an asset is completely written off. When asset scrap value is 0 the template will calculate the depreciation on complete asset value.
Entering the above-mentioned details will give you the following results:
Depreciation/Year
Depreciation Percentage
Total Depreciation for the life span of the asset
Book Value after the life span of the asset
The balance amount is just for accuracy check. It should always be 0. It is the Scrap Value minus Book Value at the end of the life span.
Diminishing Balance Depreciation Calculation
Similar to the above section, enter Asset Cost and Additional Asset Cost to obtain total Asset Price.
Enter the Scrap Value and Life Span of the asset. In Diminishing Method, the scrap value cannot be 0.
The template calculates the Rate of Depreciation applying the following formula:
1 – (Scrap Value/Asset Value) ^ (1/Life Span)
In the end, the template displays the depreciation schedule for the diminishing balance method. It uses the rate of depreciation on the closing asset value of the asset.
It calculates the depreciation using the below formula:
Book Value of Each Year X Depreciation Rate
It calculates the depreciation until the scrap value amount.
This template can be useful to the account professionals, assistants, and SME owners. ]
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