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

## 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

Accumulated depreciation is defined as the total depreciation seen on an asset after a given number of years.

## Accumulated Depreciation Example

How to calculate accumulated depreciation?

1. First, determine the cost of the asset.

For this example, we will say the cost of the asset was \$100.00.

2. Next, determine the salvage value.

For this example, the salvage value is found to be \$50.00.

3. Next, determine the lifetime in years.

This asset will last 10 years.

4. Next, determine the number of years it’s been owned.

We will say it’s been owned for 2 years so far.

5. 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.