The Hesapstan depreciation calculator is designed to calculate the annual depreciation amount of a fixed asset (equipment, machinery, vehicle, etc.), using either the straight-line or declining-balance method, based on the cost, salvage value, and useful life you enter.
How is depreciation calculated?
Straight-line method: Annual Depreciation = (Cost − Salvage Value) / Useful Life (Years). This amount is the same every year.
Declining-balance (double-declining) method: Annual Rate = min(2 / Useful Life, 100%); That Year's Depreciation = Net Book Value at Start of Year × Annual Rate. This tool calculates only the Year 1 amount, since later years depend on the declining book value and require a full depreciation schedule.
Where do I find the useful life?
In Turkey, the official useful life and depreciation rates for each asset type are set by communiqués published by the Ministry of Treasury and Finance under the Tax Procedure Law (VUK), and vary by asset type. This tool expects you to enter the useful life yourself; it does not contain or assume an official, current communiqué table. You should confirm the correct useful life for your asset type from the current VUK communiqué or your accountant.
What does this tool not calculate?
- It does not contain or assume official VUK useful-life tables; you determine the useful life yourself.
- It does not calculate a full year-by-year depreciation schedule (year 2, year 3, etc.) for the declining-balance method; it shows only the Year 1 amount.
- It does not calculate prorated (partial-year) depreciation for assets acquired mid-year; the calculation assumes a full year.
Frequently Asked Questions
How is straight-line depreciation calculated?
The salvage value is subtracted from the cost, and the remaining amount is divided by the useful life (years) to find the fixed annual depreciation amount.
What is the difference between declining-balance and straight-line?
In the declining-balance method, a depreciation rate (typically double the straight-line rate) is applied to the declining net book value each year, resulting in higher depreciation in earlier years and lower depreciation in later years.
Do I need to determine the useful life myself?
Yes. This tool expects you to enter the useful life yourself; you should confirm the official useful life for your asset type from the current VUK communiqué or an accountant.
Does this tool calculate prorated depreciation for an asset acquired mid-year?
No. The calculation assumes a full year; prorated (day/month-based) depreciation for mid-year acquisitions is not included in this version.