Calculating your depreciation this period is straightforward once you know the Units of Production Depreciation formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Units of Production Depreciation Calculator.
What is Units of Production Depreciation?
The Units of Production Depreciation calculation tells you your depreciation this period from a few simple inputs. The figure you are solving for here is the depreciation this period, expressed in INR.
The Units of Production Depreciation formula
The core formula is:
Depreciation this period = (Asset cost - Salvage value) ÷ Total expected units × Units this periodHere is what each input means:
- Asset cost — a money amount. Example: ₹1,00,000.
- Salvage value — a money amount. Example: ₹10,000.
- Total expected units — a number. Example: 90,000.
- Units this period — a number. Example: 18,000.
How to calculate it step by step
- Write down the asset cost (for example, ₹1,00,000).
- Write down the salvage value (for example, ₹10,000).
- Write down the total expected units (for example, 90,000).
- Write down the units this period (for example, 18,000).
- Apply the formula above to get your depreciation this period.
- Double-check the result with the Units of Production Depreciation Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Asset cost | ₹1,00,000 |
| Salvage value | ₹10,000 |
| Total expected units | 90,000 |
| Units this period | 18,000 |
| Depreciation this period | ₹18,000 |
| Depreciation per unit | ₹1.00 |
With asset cost of ₹1,00,000, salvage value of ₹10,000, total expected units of 90,000 and units this period of 18,000, the depreciation this period works out to ₹18,000.
Example 2
With asset cost of ₹2,00,000, salvage value of ₹10,000, total expected units of 90,000 and units this period of 18,000, the depreciation this period works out to ₹38,000.
| Result | Value |
|---|---|
| Depreciation this period | ₹38,000 |
| Depreciation per unit | ₹2.11 |
Example 3
With asset cost of ₹50,000, salvage value of ₹10,000, total expected units of 90,000 and units this period of 18,000, the depreciation this period works out to ₹8,000.
| Result | Value |
|---|---|
| Depreciation this period | ₹8,000 |
| Depreciation per unit | ₹0.44 |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
Prefer not to do the maths by hand? — the Units of Production Depreciation Calculator does it instantly, for free, with the formula and a worked example built in.
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