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Compute accumulated depreciation and net book value for fixed assets. Choose straight-line, declining balance, sum-of-years digits, or units of production.
Last updated: February 2, 2026
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Accumulated depreciation
$2,933.333
Net book value
$22,066.667
Net book value = Cost − Accumulated depreciation
$25,000 cost, $3,000 salvage, 15-year life, 2 years elapsed → 1466.67/yr × 2 = $2,933.333 accumulated. Net book value $22,066.667.
Enter the asset’s cost, salvage value, and useful life (or estimated units for units-of-production). For declining balance, add the depreciation rate. The tool computes accumulated depreciation and net book value (cost − accumulated depreciation) for the chosen method.
Straight line: AD = ((Cost − Salvage) / Life) × Years
Net book value = Cost − AD (never below salvage)
Depreciation matches the expense of an asset to the periods in which it generates revenue. Accumulated depreciation is the running total of that expense; net book value is what remains on the books. Land is not depreciated.
Also useful: capital gains, real estate capital gains tax, and break-even calculators.
Get a custom calculatorAccumulated depreciation is the running total of depreciation expense recorded for a fixed asset since it was placed in service. It matters because it directly affects net book value on the balance sheet, influences earnings quality analysis, and supports decisions about replacement timing, pricing, and tax strategy. Whether you are a business owner, analyst, or accountant, tracking depreciation accurately helps avoid overstated asset values.
This calculator supports four common methods and applies each method's formula to compute accumulated depreciation (AD), then derives net book value (NBV).
Example 1 (Straight-line): Cost $25,000, Salvage $3,000, Life 15 years, 2 years elapsed. Annual depreciation = $22,000 / 15 = $1,466.67. AD after 2 years = $2,933.33. NBV = $22,066.67.
Example 2 (Declining balance at 10%): Same asset. Year 1 depreciation = ($25,000 - $3,000) x 10% = $2,200. Year 2 depreciation = ($22,800 - $3,000) x 10% = $1,980. AD = $4,180. NBV = $20,820.
Example 3 (Units of production): Cost $25,000, Salvage $3,000, Estimated units 75,000, Produced to date 10,700. Per-unit depreciation = $22,000 / 75,000 = $0.2933. AD = $3,138.67. NBV = $21,861.33.
For the same asset assumptions (Cost $25,000, Salvage $3,000), method choice changes the pace of expense recognition and resulting book value.
| Method | Key Inputs | Accumulated Depreciation | Net Book Value |
|---|---|---|---|
| Straight-line | Life 15, Years 2 | $2,933.33 | $22,066.67 |
| Declining balance | Rate 10%, Years 2 | $4,180.00 | $20,820.00 |
| SYD | Life 15, Years 2 | $5,316.67 | $19,683.33 |
| Units of production | 10,700 of 75,000 units | $3,138.67 | $21,861.33 |
Use straight-line for stable, predictable asset usage. Usedeclining balance or SYD when asset productivity is higher in early years. Use units of production when wear is tied to measurable output, such as machine hours or production units.
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