Units of production depreciation calculator
When an asset wears by use rather than by age, depreciating it per unit produced matches cost to revenue better.
Depreciation this period
16 800.00
- Depreciation per unit
- 0.210 000
- Accumulated depreciation
- 50 400.00
- Book value
- 69 600.00
- Share of lifetime output used
- 48.00 %
Show the working
- Asset cost = 120 000
- Salvage value = 15 000
- Lifetime output = 500 000
- Units this period = 80 000
- Units to date = 240 000
- depreciable = 120 000 - 15 000 = 105 000
- Depreciation per unit = 105 000 / 500 000 = 0.21
- Depreciation this period = 0.21 * 80 000 = 16 800
- Accumulated depreciation = min(0.21 * 240 000, 105 000) = 50 400
- Book value = 120 000 - 50 400 = 69 600
- Share of lifetime output used = 240 000 / 500 000 * 100 = 48
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- per unit = (cost - salvage) / lifetime output
- period charge = per unit x units produced
This is arithmetic, not financial advice. Real products carry fees, tax treatment and terms that no formula captures.