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Depreciation tax shield calculator

Depreciation tax saving is calculated as Dep × τ. Use the stated system boundary and matching input units.

Shield=Dep×τ\text{Shield} = \text{Dep} \times \tau

Calculator

Enter the values you know and leave one box empty. Calculate finds the empty one, the result or any input.

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Worked example

Given

  • Dep\text{Dep} = 20,000 $
  • τ\tau = 0.25 —
Shield=20,000×0.25=5,000\text{Shield} = 20{,}000 \times 0.25 = 5{,}000

Symbols and units

SymbolMeaningUnit
Shield\text{Shield}depreciation tax saving$
Dep\text{Dep}allowed depreciation$
τ\tautax rate—

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Results are estimates for study and screening. Check the inputs, units and assumptions before you use them for design, billing or contract decisions.