Accumulated Depreciation Calculator
Calculate total depreciation expense for fixed assets using various depreciation methods
Calculate Accumulated Depreciation
Equal depreciation expense each year
Original purchase price of the asset
Expected value at end of useful life
Expected years of productive use
Time period for depreciation calculation
Depreciation Results
Example Calculation
Manufacturing Equipment Example
Asset: Toy-producing machine
Cost: $25,000
Salvage Value: $3,000
Useful Life: 15 years
Calculate for: 3 years
Straight-Line Calculation
Annual Depreciation = ($25,000 - $3,000) ÷ 15 = $1,467
Accumulated (3 years) = $1,467 × 3 = $4,400
Net Book Value = $25,000 - $4,400 = $20,600
Depreciation Methods
Straight-Line
Equal depreciation each year
Most common and simple
Declining Balance
Higher early depreciation
Accelerated method
Sum of Years
Accelerated, fraction-based
Declining each year
Units of Production
Based on actual usage
Variable depreciation
Key Concepts
Book Value
Original cost minus accumulated depreciation
Salvage Value
Expected value at end of useful life
Useful Life
Expected years of productive use
Depreciable Amount
Cost minus salvage value
Understanding Accumulated Depreciation
What is Accumulated Depreciation?
Accumulated depreciation is the total amount of depreciation expense that has been allocated to a fixed asset since it was put into service. It represents the cumulative reduction in an asset's value over time due to wear, tear, and obsolescence.
Why Calculate It?
- •Financial reporting and accounting compliance
- •Tax deduction calculations
- •Asset replacement planning
- •Insurance claim valuations
Applicable Assets
Depreciable Assets
- • Buildings and structures
- • Machinery and equipment
- • Vehicles and transportation
- • Furniture and fixtures
- • Computer equipment
Non-Depreciable Assets
- • Land (doesn't lose value over time)
- • Inventory (not fixed assets)
- • Cash and investments
- • Accounts receivable