This calculator helps you determine the depreciation of assets in Pakistani Rupees (PKR). Here’s a step-by-step guide on how to use it:

Basic Steps

1. Select a Depreciation Method: Choose from four methods in the dropdown menu:
   • Straight-Line
   • Declining Balance
   • Sum-of-Years’ Digits
   • Units of Production
2. Enter Asset Cost: Input the original purchase price or cost of the asset in PKR.
3. Enter Salvage Value: Input the estimated value of the asset at the end of its useful life in PKR.
4. Enter Additional Parameters: Based on your selected method, you’ll need to input:
   • For Straight-Line, Sum-of-Years, and Declining Balance: Enter the useful life in years
   • For Declining Balance: Enter the rate percentage (default is 200% for double-declining)
   • For Units of Production: Enter total units and units per year
5. Calculate: Click the “Calculate Depreciation” button to generate results.

Understanding the Results

After calculation, you’ll see:

1. Summary: Shows the chosen method and total depreciation amount.
2. Depreciation Schedule: A year-by-year breakdown with:
   • Beginning Value: Asset value at start of year
   • Depreciation: Amount depreciated during that year
   • Ending Value: Remaining asset value at year-end

Tips for Each Method

• Straight-Line: Simplest method with equal depreciation each year. Good for assets that depreciate steadily.
• Declining Balance: Accelerated method with higher depreciation in early years. The calculator automatically switches to straight-line when it gives higher depreciation.
• Sum-of-Years’ Digits: Another accelerated method that front-loads depreciation but is more gradual than declining balance.
• Units of Production: Best for assets whose depreciation is based on usage rather than time (like machinery or vehicles).

Notes

• The calculator validates your inputs and shows error messages if values are invalid.
• All monetary values are displayed in Pakistani Rupees (PKR).
• For tax purposes, consult with a financial advisor as the Federal Board of Revenue (FBR) has specific guidelines for asset depreciation in Pakistan.