Units of Production Depreciation Calculator

Per-unit rate = (cost − salvage value) ÷ total estimated lifetime units. Each period's depreciation = per-unit rate × units actually produced that period. The expense therefore varies with usage, and accumulated depreciation reaches the full depreciable base when total output reaches the estimate.

Any measure of output that drives wear: parts produced, machine hours, miles or kilometres driven, tonnes processed, copies printed, flight hours. Choose the measure that best reflects how the asset is consumed, and estimate its realistic lifetime total from the manufacturer's rating and your duty cycle.

When usage varies significantly year to year and drives the asset's wear — heavy equipment, production machinery, vehicles on irregular duty. It matches expense to actual activity (and revenue), so a quiet year doesn't over-charge depreciation. Straight-line is simpler and better for assets that age with time regardless of use, like buildings or office fit-out.

It's accepted for book/financial reporting under GAAP and IFRS where it reflects the consumption pattern. For tax, most jurisdictions prescribe time-based statutory methods (e.g. MACRS in the US), though some allow usage-based depreciation for specific assets like natural-resource or certain production equipment. Use it for management and financial accounts, and follow the tax code for the return.