Chattel Depreciation Calculator

This calculator works out the depreciation on a chattel using the diminishing value method, the approach most commonly used in New Zealand for rental property assets and business equipment. Chattels are the separately identifiable, movable items that come with a property or business, such as carpets, curtains, an oven, a heat pump, a dishwasher or furniture, as distinct from the building itself. While the building generally cannot be depreciated for tax, many chattels can be, letting a landlord or business owner claim a deduction each year for the wear and tear that gradually reduces an asset's value. The diminishing value method applies a fixed percentage rate to the asset's remaining book value each year, so the depreciation is largest in the first year and tapers off over time, reflecting how assets typically lose value fastest when new. This tool makes the calculation simple. You enter the chattel's cost, the diminishing value depreciation rate set by Inland Revenue for that type of asset, and the number of years, and the calculator returns the book value remaining at the end, the depreciation you can claim in the first year, and the total depreciation claimed over the period. The results update as you type, so you can model different rates and time frames. Use it to estimate deductions for a rental property or business, to plan cashflow, or to understand how an asset's book value falls. Two important points: depreciation rates differ by asset type and are set by Inland Revenue, so check the correct rate for your chattel, and depreciation recovered when you sell an asset for more than its book value may be taxable. This is an estimate to guide you, not tax advice; confirm with Inland Revenue or your accountant.

Diminishing value: each year's depreciation = remaining book value x rate. IRD sets rates by asset type. An estimate, not tax advice; confirm with IRD or your accountant.