Annuity Depreciation Calculator

Annuity method reduces book value by fixed capital recovery minus interest on opening book value. Does not determine tax acceptance.

Annuity method reduces book value by fixed capital recovery minus interest on opening book value. Does not determine tax acceptance.

Your workbenchInputs are not stored

Result

Enter your values and run the tool to see your result.

How to use this tool

Check the units, enter your values, and run the tool. Results follow the assumptions and method below.

Calculation method

Annual capital recovery charge(cost*(1+rate/100)^years-salvage)*(rate/100)/((1+rate/100)^years-1)
First-year interest on book valuecost*rate/100
First-year net book reduction(cost*(1+rate/100)^years-salvage)*(rate/100)/((1+rate/100)^years-1)-cost*rate/100

References