Depreciation Calculator
Calculate asset depreciation using straight-line, declining balance, or SARS section 11(e) wear and tear. Includes Section 12C manufacturing allowances, Section 12E SBC 100% deduction, and IFRS vs SARS comparison.
Quick Calculator Get a fast estimate
R
R
yrs
Annual depreciation (Year 1)
R 18 000
Depreciation rate
0.18%
Book value after Year 1
R 82 000
Book value after Year 2
R 64 000
Total depreciable amount
R 90 000
Tax saving (Year 1 @ 27% CIT)
R 4 860
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How to Use the Depreciation Calculator
Enter the asset cost, salvage value, and useful life. Select the depreciation method — SARS s11(e) wear and tear, straight-line, or declining balance. The calculator shows annual deductions and tax savings at the 27% corporate income tax rate.
The Extended Calculator generates a full depreciation schedule and compares methods side by side. The Professional Calculator covers Section 12C, 12E SBC 100% allowances, and deferred tax calculations.
Need more detail?
Extended Calculator More options, charts, and scenario comparison
R
R
yrs
| Year | Depreciation | Book value | Cumulative |
|---|---|---|---|
| 1 | R 18 000 | R 82 000 | R 18 000 |
| 2 | R 18 000 | R 64 000 | R 36 000 |
| 3 | R 18 000 | R 46 000 | R 54 000 |
| 4 | R 18 000 | R 28 000 | R 72 000 |
| 5 | R 18 000 | R 10 000 | R 90 000 |
Depreciation Formulas
Straight-line: Annual = (Cost − Salvage) ÷ Useful life
Declining balance: Annual = Book value × (2 ÷ Life)
Sum of digits: Annual = ((n−y+1) ÷ SYD) × Depreciable amount
SARS s11(e): Cost ÷ Write-off period (no salvage)
Tax saving = Annual deduction × CIT rate (27%)
SARS Write-off Periods (s11(e))
| Asset type | Write-off period | Annual deduction (R100k asset) |
|---|---|---|
| Computers, IT equipment | 3 years | R33,333/yr |
| Motor vehicles (trade) | 5 years | R20,000/yr |
| Machinery & equipment | 5 years | R20,000/yr |
| Furniture & fittings | 6 years | R16,667/yr |
| Tools | 3 years | R33,333/yr |
| Patents, copyright | Life of asset or 25 yr | Varies |
Need full precision?
Professional Calculator Complete parameters, sensitivity analysis, and detailed breakdown
R
Section 11(e) wear & tear
R 50 000 (computers)
Computers / IT (3 yr)
R 50 000/yr — saving R 13 500/yr
Motor vehicles (5 yr)
R 30 000/yr — saving R 8 100/yr
Machinery (5 yr)
R 30 000/yr — saving R 8 100/yr
Furniture (6 yr)
R 25 000/yr — saving R 6 750/yr
| Section | Description | Basis |
|---|---|---|
| s11(e) | General wear & tear | Straight-line over write-off period |
| s12B | Biofuel & solar | 50-30-20 over 3 years |
| s12C | Manufacturing plant | 40-20-20-20 over 4 years |
| s12E | Small business (SBC) | 100% in year of purchase |
| s12L | Energy efficiency | 95c per kWh energy saved |
Frequently Asked Questions
s11(e) allows businesses to deduct trade asset costs over SARS-specified periods: computers 3yr (33%/yr), vehicles 5yr (20%), machinery 5yr, furniture 6yr. No salvage value — full cost is written off. Confirmed in SARS Interpretation Note 47.
Straight-line: same deduction each year — simple and predictable. 200% DB: 2× straight-line rate on remaining book value — higher deductions early, lower later. SARS prefers straight-line for s11(e). DB is common in accounting (IFRS) for assets that lose value faster early.
Yes — Section 12E SBC allowance. Qualifying conditions: incorporated as CC or Pty Ltd, annual turnover under R20 million, shareholders hold no other business interests in similar trade, not a personal service company (PSC). 100% deduction in year of purchase.
40-20-20-20 allowance for new/unused manufacturing plant. Year 1: 40% of cost; Years 2–4: 20% each year. Total 100% over 4 years. Applies to companies in manufacturing. Large business manufacturing assets may also qualify for s12C enhanced if >R1bn investment.
If SARS allows a 3-year write-off but accounting uses 5 years, in Year 1 SARS deducts more than accounting expenses → temporary difference → deferred tax liability on the balance sheet. It reverses in Years 4–5 when accounting depreciates but SARS allows nothing.