Units of Production Depreciation Calculator

About this calculator

The units-of-production depreciation method expenses an asset's cost based on how much it is actually used during a period — measured in units produced, hours run, or miles driven — rather than on a fixed time schedule like straight-line depreciation. The formula is: depreciation per unit = (cost − salvage value) ÷ total estimated lifetime units, and period expense = depreciation per unit × units produced in that period, making it an accepted method under US GAAP for assets whose wear correlates with usage rather than age.

Manufacturing companies use this method for machinery, vehicles, and equipment whose useful life is tied more closely to how hard they are worked than to the calendar — a factory press that runs double shifts wears out faster than an identical press sitting mostly idle, and units-of-production depreciation reflects that reality in the financial statements, matching expense to the revenue the asset actually helped generate.

This calculator takes an asset's cost, salvage value, estimated total lifetime units, and units produced this period to compute depreciation expense, accumulated depreciation, and remaining book value.