Accumulated Depreciation Calculator
Accumulated depreciation is the total amount of an asset's value that has been written off since you bought it. Enter the asset's original cost, useful life and how many years it has been in use, and the calculator returns the annual straight-line depreciation, the total accumulated so far, and the remaining book value. It is a quick way to track an asset on your balance sheet.
Formula
Annual = Cost ÷ Life | Total = Annual × Years Used
- Annual depreciation = original cost ÷ useful life (straight-line method, assuming no salvage value).
- Accumulated (total) depreciation = annual depreciation × years in use.
- Remaining book value = original cost − accumulated depreciation.
- The straight-line method spreads the cost evenly over the asset's life.
- If the asset has a salvage value, subtract it from cost before dividing by the useful life.
Example Calculation
Inputs
- Original Cost (PKR): 1000000
- Useful Life (years): 20
- Years Used: 5
An asset costing 1,000,000 with a 20-year life depreciates 1,000,000 ÷ 20 = 50,000 per year. After 5 years, accumulated depreciation is 50,000 × 5 = 250,000, leaving a book value of 750,000.
Frequently asked questions
What is accumulated depreciation?
It is the running total of depreciation charged against an asset since it was acquired, shown as a contra-asset on the balance sheet.
How is straight-line depreciation calculated?
Divide the asset's cost (less any salvage value) by its useful life to get a constant annual depreciation amount.
What is book value?
Book value is the asset's original cost minus accumulated depreciation — its remaining value on the books, not necessarily its market price.
Does this include salvage value?
No. This version assumes zero salvage value. If your asset has a residual value, subtract it from the cost before applying the formula.
Can book value go below zero?
No. Once accumulated depreciation reaches the depreciable cost, the asset is fully depreciated and no further depreciation is taken.