Accumulated Depreciation Calculator

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

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?

  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.



accumulated depreciation caluclator
accumulated depreciation formula