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Depreciation (Units Of Production) Calculator

Work out depreciation (units of production) instantly with clear inputs, formula shown and shareable results.

About Depreciation (Units Of Production) Calculator

Units-of-production depreciation ties the charge to actual usage rather than to elapsed time. It matches cost to revenue far better for assets whose wear depends on throughput — mining equipment, moulds and tooling, aircraft engines measured in cycles.

Formulas

Rate per unit

Rate = (Cost - Residual value) / Total estimated output

Period charge

Charge = Rate x Units produced this period

Worked example

With the default values below, Depreciation (Units Of Production) Calculator returns Depreciation for the period of $30,600.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Asset cost
250,000
Residual value
25,000
Total estimated output over life
500,000
Units produced this period
68,000

Results

Depreciation for the period
$30,600.00
Depreciation rate per unit of output
$0.45000
Share of total output consumed
13.60%
Book value after the period
$219,400.00

Step by step

  1. 1Values used
  2. 2Rate per unit
  3. 3Period charge
  4. 4Depreciation for the period= 30,600.00
  5. 5Depreciation rate per unit of output= 0.45000
  6. 6Share of total output consumed= 13.60
  7. 7Book value after the period= 219,400.00

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 or tax into account.
  • Figures are rounded for display to 5 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

What if output estimates change?

Recalculate the rate using the remaining depreciable amount and the revised remaining output. Prior periods are not restated.

Can the charge be zero in a quiet period?

Yes, and that is the point: an idle asset attracts no depreciation under this method, which is why some regimes disallow it for tax.

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Depreciation (Units Of Production) Calculator | Calcrivo