Depreciation Tax Shield Calculator
Depreciation Tax Shield Calculator
Component | Description |
---|---|
Depreciation Expense | The total depreciation expense for the period. |
Tax Rate | The tax rate applicable to the company's income. |
Depreciation Tax Shield | The tax savings obtained from the depreciation expense. |
Formula | Depreciation Tax Shield = Depreciation Expense × Tax Rate |
Purpose | Used to calculate the tax savings from depreciation, reducing the taxable income of a company. |