Amortisatsioonikalkulaatori

Amortisatsioonikalkulaator is an Estonian term that translates to "depreciation calculator" in English. It is a tool used to calculate the decrease in value of an asset over time. Assets, such as machinery, vehicles, or buildings, lose value due to wear and tear, obsolescence, or usage. The process of accounting for this loss of value is called depreciation, and a depreciation calculator helps to determine the amount of depreciation expense for a given period.

There are several methods for calculating depreciation, and an amortisatsioonikalkulaator can typically accommodate these different approaches. Common methods include straight-line depreciation, reducing-balance depreciation, and sum-of-the-years'-digits depreciation. The choice of method can affect the amount of depreciation expense recognized each year, which in turn impacts a company's financial statements and tax liabilities.

To use an amortisatsioonikalkulaator, users typically need to input several pieces of information about the asset. This includes the initial cost of the asset, its estimated useful life (the period over which it is expected to be used), and its salvage value (the estimated value of the asset at the end of its useful life). The calculator then applies the selected depreciation method to these inputs to generate the depreciation expense for each accounting period, often presented as a schedule showing the accumulated depreciation and the book value of the asset over time. Depreciation calculators are valuable for financial planning, asset management, and tax compliance.