Accumulated depreciation is the total depreciation recorded since an asset was bought. It sits on the balance sheet as a contra-asset, reducing the asset’s cost to its net book value. Accelerated methods front-load the expense.
How to use the Accumulated Depreciation Calculator
- Method
- Cost of the asset
- Salvage value
- Useful life
- Years elapsed
- Total expected units
- Units produced so far
Results update as you type, and every field accepts the units shown in its menu.
How it works
Choose the method and enter the asset cost, salvage value, useful life and years elapsed (or units produced for the units method).
Tips
- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.
Common mistakes to avoid
- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.
Inputs explained
| Field | What to enter |
|---|---|
| Method | Choose one: Straight-line, Double-declining balance, Sum-of-the-years’ digits, Units of production |
| Cost of the asset | Amount in your currency |
| Salvage value | Amount in your currency |
| Useful life | In years |
| Years elapsed | In years |
| Total expected units | A number |
| Units produced so far | A number |
What each result means
- Net book value = [Cost of the asset] – [Accumulated depreciation]
- Share of cost depreciated = [Accumulated depreciation]÷[Cost of the asset]×100
- Straight-line depreciation per year = ([Cost of the asset] – [Salvage value])÷[Useful life]
Example values
How the main result changes when Cost of the asset changes and everything else stays at the example values above:
| Cost of the asset | Accumulated depreciation |
|---|---|
| 25,000 | 8,000 |
| 37,500 | 13,000 |
| 50,000 | 18,000 |
| 62,500 | 23,000 |
| 75,000 | 28,000 |
| 100,000 | 38,000 |
Formula
Straight-line: (cost − salvage) × years ÷ lifeDouble-declining: book value = cost × (1 − 2 ÷ life)^years (not below salvage)Sum-of-years' digits: (cost − salvage) × [Σ of (life − k + 1) for k = 1..years] ÷ [life(life + 1)/2]Units of production: (cost − salvage) × units produced ÷ total unitsWorked example
Inputs — Method: Straight-line; Cost of the asset: $50,000; Salvage value: $5,000; Useful life: 10 years; Years elapsed: 4 years; Total expected units: 100,000; Units produced so far: 38,000.
Results — Accumulated depreciation = $18,000.00; Net book value = $32,000.00; Share of cost depreciated = 36 %; Straight-line depreciation per year = $4,500.00.
Frequently asked questions
What is accumulated depreciation?
The total depreciation charged on an asset since it was put into use.
Is accumulated depreciation an asset or a liability?
Neither – it is a contra-asset account that reduces the asset's value.
Which method should I use?
Straight-line suits assets used evenly; accelerated methods suit assets that lose value fast.
What formula does the Accumulated Depreciation Calculator use?
Straight-line: (cost − salvage) × years ÷ life.