Free tool · Depreciation
Depreciation calculator for fixed assets, with a full schedule.
Enter the cost, residual value and useful life, choose a method and see each financial year’s depreciation and book value. Download the schedule for your spreadsheet. It runs in your browser, so nothing you type leaves your computer.
- Straight line, reducing balance and double declining
- Any financial year end
- Yearly and monthly schedules to download
Depreciation calculator
Calculate depreciation
The example is a AED 12,000 laptop over three years with no residual value. Change any field and the schedule updates.
Summary
- Depreciation in a full year
- AED 4,000.00Per month: AED 333.33
- Total depreciation
- AED 12,000.00
- Fully depreciated by
- December 2028
- Closing book value
- AED 0.00
Schedule by financial year
| Financial year | Months | Opening book value | Depreciation | Accumulated | Closing book value |
|---|---|---|---|---|---|
| 2026 | 12 | 12,000.00 | 4,000.00 | 4,000.00 | 8,000.00 |
| 2027 | 12 | 8,000.00 | 4,000.00 | 8,000.00 | 4,000.00 |
| 2028 | 12 | 4,000.00 | 4,000.00 | 12,000.00 | 0.00 |
Runs in your browser. Nothing you type is sent to us or stored.
Authorized vendor to
- Ministry of Finance
- Ministry of Interior
- DGE Abu Dhabi
- Etihad Aviation
- EDGE Group
Delivered for
- Hindustan Unilever
- Nokia
- Linde
- USA Today
- JSL
Procurement-ready
- Emirati national company
- National ICV certificate
- Abu Dhabi Government Procurement Gate
- UAE Ministry of Finance, federal procurement
- Registered ADNOC vendor
The methods
How each method works
Straight line
(Cost − residual value) ÷ useful life, the same amount every year. A AED 12,000 laptop over 3 years with no residual value is depreciated by AED 4,000 a year.
Reducing balance
A fixed rate times the book value at the start of each year, so the charge falls every year. At 20%, a AED 10,000 asset is depreciated by AED 2,000 in year one and AED 1,600 in year two.
Double declining balance
Twice the straight-line rate on the book value, switching to straight line when that gives more, and never below the residual value. Over 5 years: 40% a year.
The rules
What IAS 16 says about depreciation
Under IFRS, IAS 16 sets the rules for property, plant and equipment. IFRS for SMEs has similar rules in Section 17.
When it starts
Depreciation begins when the asset is available for use, in the location and condition management intends (paragraph 55).
Which method
The method should reflect how the asset’s benefits are used up: straight line, reducing balance or units of production (paragraphs 60 and 62).
Review every year
The residual value and the useful life are reviewed at least at each financial year end (paragraph 51), and the method too (paragraph 61).
Significant parts
Each part of an item with a cost that is significant to the total is depreciated separately (paragraph 43).
Next steps
Keep the register and the books in step
Sources
Sources
Checked on 14 November 2026.
Book a demo
Count your assets against the books
Sijil keeps the physical side of your fixed assets, tags, custodians, locations and counts, and reconciles it with the financial register in your ERP, where depreciation is calculated.
- A live demo, not slides
- Arabic or English
- Under NDA if you need one
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FAQ
Depreciation, answered
How do you calculate depreciation?
For straight line, subtract the residual value from the cost and divide by the useful life. A AED 12,000 asset with no residual value over 3 years is depreciated by AED 4,000 a year. Other methods charge more in the early years.
How is depreciation calculated in the UAE?
Companies depreciate assets under IFRS (IAS 16), using a method that reflects how the asset is used, most often straight line. For Corporate Tax, taxable income starts from the accounting income in the financial statements (Article 20 of Federal Decree-Law No. 47 of 2022), with the adjustments the law lists. Check special cases with your tax adviser.
What is 20% depreciation?
Usually a reducing-balance rate: each year’s depreciation is 20% of the book value at the start of the year, so a AED 10,000 asset is depreciated by AED 2,000 in year one and AED 1,600 in year two. On a straight-line basis, 20% a year means a five-year life.
Which depreciation method is best?
The one that matches how the asset is used up. Straight line suits assets used evenly, such as furniture and buildings; reducing balance suits assets that lose most value early, such as vehicles and some IT.
What is the residual value?
What you expect to get for the asset at the end of its useful life, after disposal costs. It is often zero for IT equipment and furniture.
Does Sijil calculate depreciation?
No. Sijil manages the physical side of your fixed assets: tags, custodians, locations, movements and counts. Values and depreciation stay in your ERP, and Sijil reconciles the two registers.