Depreciation calculator
Enter an asset cost, its residual value and its useful life to see the depreciation charge by either straight line or reducing balance, with the book value year by year. Free, no signup.
Straight line spreads the cost evenly and is the usual choice for fittings, furniture and machinery. This is an accounting calculation; Singapore capital allowances under section 19 or 19A follow their own rules.
Choosing between the two methods
Straight line spreads the cost evenly across the asset's life. It suits assets that wear out steadily: fittings, furniture, most machinery. It is also the easiest to explain and the easiest to keep right.
Reducing balance charges more in the early years. It suits assets that lose most of their value when new, such as vehicles and IT equipment. The calculator derives the rate that lands exactly on your residual value at the end of the life, rather than making you guess a percentage.
Accounting depreciation is not tax depreciation
This is an accounting calculation for your management and statutory accounts. Singapore tax works differently: capital allowances under sections 19 and 19A of the Income Tax Act have their own rates and elections, including full write-off options for certain assets.
Do not use a depreciation figure as a tax deduction without checking the capital allowance treatment for that asset class.
Questions
What is straight line depreciation?
Cost minus residual value, divided by the useful life in years. The same amount is charged every year.
What is reducing balance depreciation?
A fixed percentage is applied to the remaining book value each year, so the charge is largest in year one and shrinks over time. It suits assets that lose value fastest when new.
Can I use this depreciation figure for my Singapore tax return?
No. Singapore grants capital allowances under sections 19 and 19A of the Income Tax Act, which follow their own rates and elections. Accounting depreciation and tax capital allowances are calculated separately.
A calculator answers one question once. Digital 9 Labs builds the system that answers it continuously — your real numbers, updated as the work happens, without anyone reopening a spreadsheet.