This Accumulated Depreciation Excel Template is a useful tool to calculate the total depreciation of an asset when given the following inputs: purchase price, useful life, and salvage value of the equipment. This template uses the straight line depreciation method. This Excel template is a great tool for beginners in Finance and is intended to serve as an educational tool, for those who enjoy learning with examples.

What is Accumulated Depreciation?

Accumulated depreciation is the total amount of depreciation expense associated with a specific asset (usually PP&E) since it was put into use. It is a contra-asset account, which is a negative asset account that offsets the balance  in the asset account it is associated with. A credit to a contra-asset increases the value of the account, while a debit decreases its value. When depreciation expense is recorded on the income statement of a company, the same amount is also credited to the accumulated depreciation account on the balance sheet. This also leads to a decrease in the asset's met book value. A depreciation schedule is often created to track the total depreciation over an asset's useful life when building a financial model.

Learn More About The Topic

Read CFI's guide on accumulated depreciation to understand the concept and see examples of calculation.
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Amber-Rose Garza

Thank you for this free depreciation template!

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