Calculate an accounting-period charge, closing carrying amount and asset schedule for tangible fixed assets, intangible assets or goodwill.
Depending on the circumstances, depreciation or amortisation may instead form part of the cost of another asset, such as inventory.
| Period / component | Opening carrying amount | Charge | Accumulated charge | Closing carrying amount |
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A practical explanation of the inputs behind a fixed asset depreciation calculator or intangible asset amortisation calculator.
For a simple straight-line depreciation calculation, subtract residual value from cost and divide the depreciable amount by useful life. For example, an asset costing £50,000 with a £5,000 residual value and five-year useful life has a full-year charge of £9,000 before any partial-period adjustment.
Straight-line allocates an equal amount to each period of useful life, subject to the date the asset became available for use. This calculator uses exact anniversary-month slices by default, so partial periods respect the actual number of days in February and other months.
A reducing balance depreciation calculator applies the annual rate to the opening carrying amount. The charge reduces over time, cannot take the asset below residual value and is adjusted at the end of useful life if the selected rate would otherwise leave an unallocated amount.
The usage method multiplies depreciable amount by current-period units divided by expected lifetime units. Because future activity is unknown, this tool reports the current-period charge and does not invent a future production schedule.
Depreciation or amortisation generally begins when the asset is available for use, meaning it is in the location and condition necessary for its intended use. That date may differ from the purchase or payment date. Monthly alternatives in this tool are disclosed practical conventions, not accounting-standard rules.
Residual value is the estimated amount expected to be recovered on disposal at the end of useful life, after estimated disposal costs. Intangible assets under FRS 102 and FRS 105 are normally assumed to have no residual value unless specific conditions apply.
Useful life reflects the period or units over which an entity expects to consume an asset's economic benefits. It is a management estimate based on the asset's facts, not a tax life selected to achieve a preferred expense.
Depreciation usually describes systematic allocation for tangible property, plant and equipment. Amortisation describes the equivalent allocation for finite-life intangible assets and, under FRS 102 or FRS 105, goodwill. Both reduce carrying amount over useful life.
FRS 102 treats intangible assets as finite-life assets. Amortisation starts when available for use, follows the expected consumption pattern and uses straight-line where that pattern cannot be reliably determined. The exceptional 10-year limit applies only when useful life itself cannot be reliably estimated.
Yes. FRS 102 goodwill has a finite useful life and is amortised systematically. If a reliable life cannot be estimated in exceptional circumstances, the selected life cannot exceed 10 years. An impairment review remains a separate exercise.
No. Goodwill accounted for under IFRS 3 is not amortised. It is subject to the applicable impairment requirements in IAS 36. An indefinite-life intangible under IAS 38 is also not amortised.
A change in useful life, residual value or method is generally treated as a change in estimate and applied prospectively where the relevant standard requires. The revised-estimate mode starts from the supplied carrying amount and does not rewrite earlier charges.
Where major PPE components have significantly different consumption patterns or useful lives, FRS 102 and IAS 16 require separate depreciation. Component mode calculates each allocation and aggregates the current charge and net book value.
Accounting depreciation is generally not the same as tax relief. UK Corporation Tax deductions for qualifying capital expenditure are generally dealt with through relevant capital-allowance or other tax rules rather than by simply deducting accounting depreciation. Use the UK Corporation Tax Calculator to build the current-tax adjustment and capital-allowance schedule.
Net book value is original cost or calculation basis less accumulated depreciation and impairment. This depreciation schedule calculator shows opening carrying amount, period charge, accumulated charge and closing carrying amount without attempting an impairment or revaluation calculation.
Yes, if it reflects the entity's policy and produces an appropriate systematic allocation. The calculator clearly labels monthly alternatives as practical conventions. Exact-date pro-rating is the default.
Not normally. FRS 102 and IAS 16 generally do not stop depreciation merely because an asset becomes idle, unless it is fully depreciated or another specified cessation point applies.
No. Depreciation and amortisation do not replace an impairment assessment. This tool does not calculate impairment losses, recoverable amount or cash-generating-unit allocations.
No. An optional derecognition date stops the charge and reports the carrying amount immediately before derecognition, but the tool does not request proceeds or calculate a gain or loss.
The calculation logic was checked against the current FRC standards and UK-adopted international standards. The explanations are concise original summaries and do not reproduce the standards.
Source review completed 28 August 2026. This tool provides a calculation aid, not an automated accounting-policy conclusion.