Units of Production Depreciation Calculator

This calculator helps you calculate the depreciation expense per unit and total depreciation based on the units produced or consumed during an accounting period.

Input Parameters

Calculation Results

Depreciation per Unit

0.00

Formula:
Depreciation per Unit = (Cost - Salvage Value) / Total Estimated Units

Total Depreciation Expense

0.00

Formula:
Total Depreciation Expense = Depreciation per Unit * Units Produced This Year

Units of Production Depreciation Calculator Calculator Usage Guide

Learn how to use the Units of Production Depreciation Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the Asset Cost of the asset.
  2. Enter the Salvage Value (estimated value at the end of its useful life).
  3. Enter the Total Estimated Units the asset is expected to produce or consume over its useful life.
  4. Enter the Units Produced This Year (actual units produced or consumed during the accounting period).
  5. Click the Calculate button to get the depreciation per unit and total depreciation expense.

Understanding the Formula

The Units of Production Depreciation method calculates depreciation based on the usage of the asset. The formula used is:

Depreciation per Unit = (Cost - Salvage Value) / Total Estimated Units

Total Depreciation Expense = Depreciation per Unit * Units Produced This Year

This method is particularly useful for assets whose usage varies significantly from period to period, such as machinery in a manufacturing setting.