This calculator uses the units-of-production (UOP) depreciation method to compute both the depreciation per unit and total annual depreciation for an item, given the item's original purchase price and salvage value, the annual number of units produced, and the estimated total number of units that the item will contribute to producing during its life span.
- The units-of-production depreciation method allows an item's depreciation to vary from year to year according to the level of production.