How to use this calculator
- Enter asset cost, residual value, expected lifetime production units, production units by period.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Accounting scenario, not a jurisdiction tax allowance. Expected units are estimates; total supplied units cannot exceed expected lifetime production.
Worked example
For the sample inputs shown above, units-of-production depreciation produces a first result of approximately 0.1. The assumptions below explain what this result represents.
What the result means
Allocate asset depreciation by actual use rather than elapsed years.
Common questions
How is the calculation performed?
Rate per unit=(cost−residual)/expected units; cumulative depreciation capped at cost−residual.
What does the model leave out?
Accounting scenario, not a jurisdiction tax allowance. Expected units are estimates; total supplied units cannot exceed expected lifetime production.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.