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Amortisation Of Intangibles Calculator

Work out amortisation of intangibles instantly with clear inputs, formula shown and shareable results.

About Amortisation Of Intangibles Calculator

Intangible assets with a finite life — patents, licences, customer lists, capitalised development — are amortised on a straight-line basis over that life, usually to a nil residual value. Indefinite-life intangibles such as goodwill are not amortised but tested annually for impairment instead.

Formulas

Annual amortisation

Charge = (Cost - Residual value) / Useful economic life

Carrying amount

Carrying amount = Cost - Accumulated amortisation

Worked example

With the default values below, Amortisation Of Intangibles Calculator returns Annual amortisation charge of $23,999.90. Change any input above and every figure here is recalculated in your browser.

Inputs used

Cost of the intangible asset
240,000
Useful economic life
10 years
Years amortised so far
4
Residual value
1

Results

Annual amortisation charge
$23,999.90
Accumulated amortisation
$95,999.60
Carrying amount
$144,000.40
Remaining useful life
6.0

Step by step

  1. 1Values used
  2. 2Annual amortisation
  3. 3Carrying amount
  4. 4Annual amortisation charge= 23,999.90
  5. 5Accumulated amortisation= 95,999.60
  6. 6Carrying amount= 144,000.40
  7. 7Remaining useful life= 6.0

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Which intangibles must not be amortised?

Goodwill and other indefinite-life intangibles under IFRS. They are subject to annual impairment testing instead.

What life should a patent use?

The shorter of its legal protection period and the period over which it is expected to generate economic benefit.

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