Calculate Accumulated Depreciation
| Year | Depreciation | Accumulated | Book Value |
|---|
2. Double Declining Balance: 2 × (1/Useful Life) × Book Value
3. Units of Production: (Cost – Salvage) × (Units Used / Total Units)
Accumulated depreciation is the total depreciation over time, while book value is the asset’s cost minus accumulated depreciation.
Wondering how much value your assets have lost since you bought them? Our Accumulated Depreciation Calculator helps you estimate total depreciation over time — whether you’re managing personal assets, small business equipment, or accounting for tax purposes.
What Is Accumulated Depreciation?
Accumulated depreciation is the total amount an asset has depreciated since the time it was purchased. It reflects how much value the asset has lost due to usage, aging, or wear and tear — and it’s essential for understanding the book value of your assets.
How to Calculate Accumulated Depreciation
The basic formula for straight-line depreciation is:
Annual Depreciation = (Cost – Salvage Value) / Useful Life
Then, to find accumulated depreciation:
Accumulated Depreciation = Annual Depreciation × Number of Years
For example, if you bought a machine for $10,000 with a $2,000 salvage value and a 5-year life:
Annual Depreciation = (10,000 – 2,000) / 5 = $1,600
After 3 years → Accumulated Depreciation = 1,600 × 3 = $4,800
How to Use This Calculator
Just enter:
- Purchase cost
- Salvage value
- Useful life (in years)
- Time elapsed
The calculator will return the total accumulated depreciation — and even the remaining book value of the asset.
Why Track Accumulated Depreciation?
- Essential for financial reporting and taxes
- Helps evaluate real-time asset value
- Supports budgeting for replacements or upgrades
- Useful for business audits and asset planning
FAQs ❓
Does depreciation apply to all assets?
No, land typically doesn’t depreciate. Depreciation is mostly used for physical, long-term assets like vehicles, equipment, and buildings.
Can I use different depreciation methods?
Yes. This calculator uses straight-line depreciation — the simplest and most commonly used method. For other methods (like declining balance), consult your accountant or tax advisor.
