Phone Depreciation Calculator
Calculate how much a phone depreciates each year and its current book value.
About the Phone Depreciation Calculator
The Phone Depreciation Calculator gives you a clear, instant answer to a question that usually means digging through tables or guessing — enter your numbers and read the result straight away.
Depreciation tells you what an asset — a car, laptop or machine — is worth over time, which matters for resale decisions, business accounts and tax. This Phone Depreciation Calculator calculates depreciation using the straight-line or declining-balance method of your choice.
The calculation applies the chosen depreciation method over the asset's useful life, showing the yearly write-down and the current book value at any point.
In Pakistan, cars are the classic example: a new car loses 10–20% of its value the moment it leaves the showroom, then depreciates more slowly. Knowing the curve helps you time a resale and compare new-versus-used purchases honestly.
For business, depreciation is also a tax concept — the Income Tax Ordinance allows deductions that reduce taxable profit. Track both the accounting and tax treatment, as the rates differ.
For the most accurate outcome from the Phone Depreciation Calculator, keep the editable rates and defaults up to date with current figures before reading the result.
How to calculate depreciation
- 1
Enter the asset's purchase price and its useful life in years.
- 2
Select the depreciation method — straight-line or declining balance.
- 3
Read the yearly depreciation and current value, updated live.
Frequently Asked Questions
What depreciation method is used?
The calculator applies declining-balance depreciation: each year the value falls by the chosen percentage of the previous year's value — the common way phones actually lose value.
What is the difference between straight-line and reducing balance depreciation?
Straight-line deducts an equal amount each year. Reducing (declining) balance deducts a fixed percentage of the remaining value, so deductions are larger early and smaller later — the method many businesses use.