Free Depreciation Calculator — SLM & WDV Methods
Depreciation is how you spread the cost of an asset (a laptop, machinery, a vehicle) across the years you use it, instead of expensing it all at once — which is both an accounting rule and a tax benefit. Two common methods exist: straight-line (SLM) writes off an equal amount each year, while written-down value (WDV) writes off more early and less later. This tool builds the full year-by-year schedule for either.
Frequently Asked Questions
- What is the difference between SLM and WDV?
- Straight Line Method (SLM) charges (Cost − Salvage) ÷ Life each year. Written Down Value (WDV) applies a fixed percentage to the current book value, so depreciation is higher in early years.
- Which method does the Income Tax Act allow?
- The Income Tax Act prescribes WDV at specified rates by asset class. Companies Act allows both; SLM is common in financial reporting.