Enter the cost, salvage value, and the total estimate units produced into the calculator to determine the units of production depreciation.
Units of Production Deprecation Formula
The following formula is used to calculate the units of production depreciation.
UPD = ( C – SV ) / TP
- Where UPD is the units of production depreciation
- C is the cost basis of the asset
- SV is the salvage value of the asset
- TP is the total production of the asset over the lifespan
Units of production depreciation is a measure of the expense of an asset per unit that it produces. In other words, how much cost per unit produced.
How to calculate units of production depreciation?
- First, determine the cost basis.
This is the total cost of the asset over it’s lifetime. For this example we will say this is $100,000.00.
- Next, determine the salvage value.
Determine the total salvage value of the asset after its useful life has expired. For this example we will say the material can be salvage for $1,000.00.
- Next, determine the units of production.
This is the total units the asset is expected to produce over it’s life. We will assume this value is 80 for this example.
- Finally, calculate the UPD.
We find the UPD to be ($100,000.00 – $1,000.00) / 80 = 1237.5 $/unit.
|units of production depreciation calculator|
|units of production depreciation formula|
|how to calculate units of production depreciation|
|units of production method formula|
|depreciation per unit formula|
|units of production depreciation formula in excel|
|units of production method calculator|
|units of activity method formula|
|units of production depreciation example|
|formula for units of production depreciation|
|units of output depreciation formula|
|unit cost depreciation formula|
|units of use depreciation formula|
|depreciation expense per unit formula|
|how to calculate depreciation per unit|
|how to calculate depreciation using units of production method|
|units of output depreciation calculator|
|units production depreciation method|
|how to calculate depreciation units of production|
|units of production method depreciation calculator|
|how to calculate unit of production depreciation|
|depreciation per unit calculator|
|calculating units of production depreciation|
|unit depreciation calculator|