Activity Method Depreciation Calculator
Calculate depreciation based on the level of activity for each period (e.g., machine cycles, miles driven, hours used)
Activity Depreciation
Time Depreciation
$
The original value of your asset or the depreciable cost
$
The value of the asset at the end of its useful life
The expected number of units that the asset will produce or last for its life (miles, widgets, hours, etc.)
The number of units used in the period of time you want to calculate depreciation
$
The original value of your asset or the depreciable cost
$
The value of the asset at the end of its useful life
The expected number of time units that the asset will last for its life (hours, days, etc.)
The number of time units used in the period you want to calculate depreciation
Calculation Formula
Depreciable Base = Asset Cost – Salvage Value
Depreciation per Unit = Depreciable Base / Useful Units
Depreciation for Period = Units Used × Depreciation per Unit
Depreciation per Unit = Depreciable Base / Useful Units
Depreciation for Period = Units Used × Depreciation per Unit
Example
You purchase a car for your business for $22,000 and expect it to have a life of 60,000 miles with a final salvage value of $2,000. If you drive 17,000 miles in a period:
Depreciable Base = $22,000 – $2,000 = $20,000
Depreciation per Mile = $20,000 / 60,000 Miles = $0.333/Mile
Depreciation for Period = 17,000 Miles × $0.333/Mile = $5,661.00
Depreciation per Mile = $20,000 / 60,000 Miles = $0.333/Mile
Depreciation for Period = 17,000 Miles × $0.333/Mile = $5,661.00
Depreciation Results
Depreciable Base:
$0.00
Depreciation per Unit:
$0.00
Depreciation for Period:
$0.00
Remaining Value:
$0.00
Remaining Units:
0
This will update the labels in the results section