Use this calculation when every balance, flow, and elapsed period follows the same accounting basis, currency, entity boundary, and reporting period. It is useful for a reproducible schedule or analytical cross-check, but the result should still reconcile to the ledger.

Resource cost

Acquisition and development cost of the natural resource.

Salvage value

Estimated residual value recoverable after extraction, such as land value.

Estimated total units

Estimated total units recoverable over the resource life; must be greater than zero.

Units extracted

Units extracted during the period.

The implemented rule is: Compute depletion expense for a natural resource from units extracted using a per-unit rate of cost minus salvage value divided by estimated total units.^[1]

Depletion rate per unit

Depletion cost assigned to each unit extracted.

Depletion expense

Depletion expense for the period, the per-unit rate times units extracted.

The calculator applies the stated arithmetic and does not decide whether a recognition method or classification is permitted under a particular accounting framework. Estimates, cutoff errors, seasonality, acquisition effects, inconsistent averages, and differing policies can make a mathematically correct result misleading.

Reconcile the inputs to the general ledger and supporting schedules. For reporting decisions, compare the result with the entity's accounting policy, applicable GAAP or IFRS guidance, prior-period disclosures, and an accountant's review.

• Units-of-Production Depreciation Rate Calculator

  Compute the units-of-production depreciation rate per unit as cost minus salvage value divided by estimated total units of output.

• Useful Life Revision Calculator

  Compute revised annual straight-line depreciation after a useful-life estimate change: book value at revision minus revised salvage, divided by remaining years, applied prospectively.