Examples
Examples
Try the starting example
- Asset cost ($)
- 1000
- Residual value ($)
- 100
- Estimated lifetime production units
- 900
- Observed production units by period
- 200,300,400
- Depreciation cost per estimated unit ($)
- $1.00
- Cent depreciation charges by period ($)
- P1: 200.00; P2: 300.00; P3: 400.00
- Closing book value ($)
- $100.00
- Depreciable amount still unallocated ($)
- $0.00
- Observed units above lifetime estimate
- 0
Try another scenario
- Asset cost ($)
- 1000
- Residual value ($)
- 100
- Estimated lifetime production units
- 1000
- Observed production units by period
- 200,300,400
- Depreciation cost per estimated unit ($)
- $0.90
- Cent depreciation charges by period ($)
- P1: 180.00; P2: 270.00; P3: 360.00
- Closing book value ($)
- $190.00
- Depreciable amount still unallocated ($)
- $90.00
- Observed units above lifetime estimate
- 0
Calculation method
Calculation method
Depreciation cost per estimated unit ($)
(cost−residual)/estimated lifetime units.
Cent depreciation charges by period ($)
Allocate by cumulative observed units/lifetime estimate, capped at the full depreciable amount; difference rounded cumulative charges.
Closing book value ($)
Cost−total allocated charges.
Depreciable amount still unallocated ($)
Closing book−residual.
Observed units above lifetime estimate
max(0,total observed units−estimated lifetime units); excess production never depreciates below residual.
Symbols and units
- a
- Asset cost ($)
- b
- Residual value ($)
- c
- Estimated lifetime production units
- d
- Observed production units by period
Use the units shown. A list keeps the order in which you enter its values. The symbol ^ means “raised to the power of”.
Assumptions & limits
Assumptions & limits
- A units-of-production cost allocation using a lifetime estimate you supply. Observed usage beyond the estimate is flagged and capped at residual; it does not revise useful life automatically.
Are these inputs private?
These calculations run in your browser. A shared link contains the values you choose to share. Only questions submitted to the separate AI finder are sent to OpenAI.
Further reading
OpenStax: depreciation methods and supplied estimates ↗
Background reading; this does not imply endorsement or independent review of SumFizz.