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.

Cost

Capitalized cost of the asset.

Salvage value

Expected salvage value at the end of the asset's useful life.

Estimated total units

Estimated total units the asset will produce, drive, or print over its life; must be greater than zero.

The implemented rule is: Compute the units-of-production depreciation rate per unit as cost minus salvage value divided by estimated total units of output.^[1]

Depreciable base

Depreciable base, the cost less salvage value to be allocated over total units.

Rate per unit

Depreciation assigned to each unit of output in cost-per-unit terms.

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.

• Depletion of Natural Resources Calculator

  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.

• 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.