How it works
Period depreciation = (cost − residual value) × period output / estimated lifetime output.
Input definitions
- Asset cost
- Enter the value in the labeled unit.
- Residual value
- Enter the value in the labeled unit.
- Estimated total lifetime units
- Enter the value in the labeled unit.
- Units produced in this period
- Enter the value in the labeled unit.
A worked example
- Asset cost
- 10000
- Residual value
- 1000
- Estimated total lifetime units
- 100000
- Units produced in this period
- 10000
Assumptions & limits
Uses the accounting classifications, periods and policies you enter. Illustrative management-accounting model; it is not an audited statement, filing or determination of local accounting or tax compliance.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-18. Content checked against the stated method and examples. Our verification approach.
Common questions
Does this track accumulated depreciation automatically?
No. Enter a period output consistent with remaining depreciable capacity and your accounting policy; prior depreciation is not stored.
How does Units-of-production depreciation work?
Period depreciation = (cost − residual value) × period output / estimated lifetime output.
What should I check before using Units-of-production depreciation?
Uses the accounting classifications, periods and policies you enter. Illustrative management-accounting model; it is not an audited statement, filing or determination of local accounting or tax compliance.