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Asset Disposal Gain Calculator

Work out asset disposal gain instantly with clear inputs, formula shown and shareable results.

About Asset Disposal Gain Calculator

A disposal gain or loss is simply net proceeds less net book value. It is an accounting correction, not trading profit: a large gain usually means depreciation was charged too fast, and a large loss means it was too slow or the asset was impaired without being written down.

Formulas

Net book value

NBV = Cost - Accumulated depreciation

Gain on disposal

Gain = (Proceeds - Disposal costs) - Net book value

Worked example

With the default values below, Asset Disposal Gain Calculator returns Gain (+) or loss (-) on disposal of $6,800.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Sale proceeds
42,000
Original cost
120,000
Accumulated depreciation
86,000
Costs of disposal
1,200

Results

Gain (+) or loss (-) on disposal
$6,800.00
Net book value at disposal
$34,000.00
Net proceeds after disposal costs
$40,800.00
Outcome
Gain on disposal

Step by step

  1. 1Values used
  2. 2Net book value
  3. 3Gain on disposal
  4. 4Gain (+) or loss (-) on disposal= 6,800.00
  5. 5Net book value at disposal= 34,000.00
  6. 6Net proceeds after disposal costs= 40,800.00
  7. 7Outcome= Gain on disposal

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.
  • Indicative accounting outcome only. Tax on disposals depends on capital allowance pools, balancing adjustments and jurisdiction-specific rules. Not tax advice.
  • 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.

Indicative accounting outcome only. Tax on disposals depends on capital allowance pools, balancing adjustments and jurisdiction-specific rules. Not tax advice.

Frequently Asked Questions

Where does the gain appear?

In other income within operating profit for most frameworks, disclosed separately if material. It is not revenue.

Is the accounting gain the taxable gain?

Rarely. Tax uses the tax written-down value, which usually differs from book value, producing a balancing allowance or charge instead.

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