Enter the cost of the asset, salvage value, life of the asset, and the number of years owned to determine the accumulated depreciation.

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## Accumulated Depreciation Formula

The following formula can be used to calculate an accumulated depreciation.

AD = (CA -SV) / LA * Y

- Where AD is the accumulated depreciation (%)
- CA is the cost of the asset
- SC is the salvage value of the asset
- LA is the life of the asset (years)
- Y is the current number of years owned

## Accumulated Depreciation Definition

An accumulated depreciation is defined as the total depreciation seen on an asset after a given number of year.

## Accumulated Depreciation Example

How to calculate accumulated depreciation?

**First, determine the cost of the asset.**For this example we will say the cost of the asset was $100.00.

**Next, determine the salvage value.**For this example the salvage value is found to be $50.00.

**Next, determine the lifetime in years.**This asset will last 10 years.

**Next, determine the number of years it’s been owned.**We will say it’s been owned for 2 years so far.

**Finally, calculate the accumulated depreciation.**Using the formula we find the accumulated depreciation to be (100-50)/10/*2 = $10.00.

## FAQ

**What is accumulated depreciation?**

Accumulated depreciation is the total amount of depreciation that an asset has undergone over a certain amount of years. Or in other words, how much depreciation has accumulated, hence the name.