Microsoft Excel is a very powerful software that is used by people from all around the world. It is a very handy tool that can easily do complicated calculations using different functions. In this article, we will use various functions to show you 9 easy ways how to calculate accumulated depreciation in Excel.

## Introduction to Accumulated Depreciation

Accumulated depreciation is the decline in the value of an asset over time until the end of its useful life. For instance, if a company buys an asset for $50,000 that has a useful life of 5 years and a $20,000 salvage value, the asset will lose ($50,000-$20,000)/5= $6,000 value each year until the end of its useful life.

## How to Calculate Accumulated Depreciation in Excel: 9 Easy Ways

In this article, we will learn how to calculate accumulated depreciation in Excel in 9 easy ways. We will use the following dataset for this purpose. In the dataset, the cost of the product, salvage value, estimated life, purchase date, depreciation rate, etc are provided. We will calculate the accumulated depreciation using these data.

### 1. Apply Simple Depreciation Formula

We can easily calculate the accumulated depreciation by using a simple depreciation mathematical formula. The steps to do so are given below:

**Steps:**

- First of all, click on the left button of the mouse to select empty cell
**D5**. - Then write down the following formula in the formula bar.

`=($D$15-$D$16)*B5/$D$17`

- Here,
**$D$15**refers to the value of cell**D15**,**$D$16**refers to the value of cell**D16**and**$D$17**is an absolute reference to cell**D17**.

- Next, Press the
**Enter**button and you will see the cumulative depreciation of the period of year 1.

- To get the cumulative depreciation value for periods 2 to 7 years, double-click the bottom right corner of cell
**D5**. - Cell
**D11**and**D13**will show the cumulative depreciation of the 7-year period which is also the accumulated depreciation.

### 2. Use the Units of Production Formula

In this method, you will learn another mathematical formula (Units of Production Formula) to determine the accumulated depreciation. Let’s follow the instructions below to calculate the units of production depreciation with formula in Excel!

**Steps:**

- First, bring your cursor to cell
**D5**and click on it. - Next, type the following formula in that cell.

`=($D$15-$D$16)*C5/$D$18`

- In this formula,
**$D$15, $D$16, $D$18**are absolute references to cells**D15**,**D16,**and**D18**respectively and**C5**refers to the value of cell**C5**.

- Now on your keyboard, hit
**Enter**. Depreciation of the 1st period will be shown in cell**D5**.

- After that, drag the bottom right corner of cell
**D5**to cell**D11.**

- Thus you will get the results for all 7 years.

- Now to find the value of accumulated depreciation, go to cell
**D13**and write down the following formula.

`=SUM(D5:D11)`

- Here,
**D5:D11**refers to all cell values from**D5**to**D11**.

**The SUM function**will add up all the depreciation of 7 years and give the accumulated depreciation.

### 3. Insert SYD Function

We can do the accumulated depreciation calculation using functions too. In this method, we will show you how to use the** SYD** function to calculate accumulated depreciation in Excel.

**Steps:**

- To begin with, select cell
**D5**and write down the formula given below.

`=SYD($D$15,$D$16,$D$17,B5)`

- In this formula,
**$D$15, $D$16, $D$17**are absolute references to cells**D15**,**D16**and**D18**respectively and**B5**refers to cell**B5**.

- Then, hit the
**Enter**button to see the depreciation in cell**D5**.

- After that, double-click on the bottom right corner of cell
**D5**to get the depreciation value for all data.

- Now we will see how to determine the accumulated depreciation from all the depreciation values. To do that, type the sum formula in cell
**D13**.

`=SUM(D5:D11)`

- Here,
**D5:D11**refers to cells**D5**through**D11.**

- Now if you press
**Enter**, you will get the accumulated depreciation in cell**D13**.

**Read More: **Calculate Sum of Years Digits Depreciation with Formula in Excel

### 4. Apply Straight-Line Method

In this procedure, you will see how to use** the SLN function **to calculate accumulated depreciation. Follow the steps below to calculate straight-line depreciation with formula in Excel.

**Steps: **

- First, use your mouse to select
**D5.** - Now you need to type the
**SLN**formula in that cell.

`=SLN($D$15,$D$16,$D$17)`

- In this formula,
**$D$15**refers to the value of cell**D15**,**$D$16**refers to the value of cell**D16**and**$D$17**is an absolute reference to cell**D17**.

- To get the result in cell
**D5**, press**Enter**.

- Then bring your cursor to the bottom right corner of cell
**D5**and click the left button of the mouse two times. - This will give you depreciation value for periods 2 through 7.

- Now we will use the
**SUM**function to determine the accumulated depreciation. To do that, use the following formula, where**D5:D11**refers to the depreciation of cells**D5**to**D11**.

- Hit
**Enter**and see the desired accumulated depreciation value.

**Read More: **How to Use SLM Method of Depreciation Formula in Excel

### 5. Utilize VDB Function

In this part of the article, we will learn the use of the** VDB** function. We can determine the accumulated depreciation by using this function. Keep on reading to see how to do it.

**Steps: **

- In the beginning, go to cell
**D5**and click on it. - Next, write down the following formula in the formula bar.

- Hit the
**Enter**button on the keyboard to find out the depreciation of 1st year.

- Now double-click the bottom right corner of cell
**D5**. This will give you depreciation for the whole period.

- After that, use the following sum formula to calculate accumulated depreciation.

`=SUM(D5:D11)`

- Here,
**D5:D11**refers to all the values of**D5**to**D11.**

- Finally, press
**Enter**and get the accumulated depreciation.

### 6. Use DB Function

In this method, you will learn the use of **the DB function** to calculate accumulated depreciation.

**Steps: **

- To begin with, you need to select cell
**D5**and type the below formula.

`=DB($D$15,$D$16,$D$17,B5)`

- In this formula,
**$D$15, $D$16, $D$17**are absolute references to cells**D15**,**D16**and**D17**respectively and**B5**refers to the value of cell**B5**.

- Next, hit
**Enter**and get the result in cell D5.

- Move your cursor to the bottom right corner of cell
**D5**and double-click on it. - This will show the results for all 7 years.

- Use the following formula to get the accumulated depreciation.

`=SUM(D5:D11)`

- Press
**Enter**on the keyboard. It will sum up all the depreciation and give the accumulated depreciation.

### 7. Apply DDB Function

Now we will demonstrate the calculation of accumulated depreciation using the** DDB** function. Read the following steps to learn how to do it.

**Steps:**

- Click on cell
**D5**and write down the following formula.

`=DDB($D$15,$D$16,$D$17,B5)`

- Here,
**$D$15, $D$16, $D$17**are absolute references to cells**D15**,**D16**and**D17**respectively and**B5**refers to the value of cell**CB5**.

- Hit the
**Enter**button on your keyboard. - It will give you the result of the 1st period.

- To find out the depreciation of the full 7 years period, double-click the bottom right corner of cell
**D5**.

- Now you can write the following sum formula to get the accumulated depreciation.

`=SUM(D5:D11)`

- It will add up all the values from
**D5**to**D11**and give the desired result.

### 8. Insert AMORLINC Function

We can also do the above calculation by the french declining balance method. For this purpose, we will use the** AMORLINC** function.

**Steps:**

- First of all, type the following formula in cell
**D5**.

`=AMORLINC($D$16,$D$20,$D$21,$D$17,B5,$D$22)`

- In this formula,
**$D$16,$D$20,$D$21,$D$17**refers to cells**D16**,**D20**,**D21**and**D17****B5**refers to the value of cell**B5**and**$D$22**is absolute reference to cell**D22**.

- Now press the Enter button and find the result in cell
**D5**.

- Next, double-click the bottom right corner of cell
**D5**and you will get results for the whole period.

- Now to find out the accumulated depreciation, use the sum formula, where
**D5:D12**refers to cells**D5**through**D12**.

`=SUM(D5:D12)`

- Finally, hit
**Enter**and see the desired accumulated depreciation.

**Read More: **How to Apply Declining Balance Depreciation Formula in Excel

### 9. Use AMORDEGRC Function

In the last method, you will see the use of the** AMORDEGRC** function to determine accumulated depreciation. Follow the steps below to learn.

**Steps:**

- First, select empty cell
**D5**. - Next, write down the
**AMORDEGRC**formula.

`=AMORDEGRC($D$16,$D$20,$D$21,$D$17,B5,$D$22)`

- To get the result for the 1st year, hit the
**EnterÂ**button.

- After that, you need to double-click the bottom right corner of cell
**D5****.** - This gives you all the depreciation value.

- Now it is time to find the accumulated depreciation. You can use the
**SUM**function for this purpose, where**D5:D12**refers to cells**D5**to**D12**.

`=SUM(D5:D12)`

- Finally, press the
**Enter**button and get the accumulated depreciation.

## Things to Remember

- While using a formula, donâ€™t forget to give proper cell references or you wonâ€™t get the desired results.
- Use the absolute reference sign ($) for the formulas otherwise, you can get erroneous results.

**Download Practice Workbook**

Download this practice workbook for practice while you are reading this article.

## Concluding Remarks

Thanks for making it this far. I hope you find this article useful. Now you know 9 different methods to calculate accumulated depreciation in Excel. Please let us know if you have any further queries and feel free to give us any recommendations in the comment section below.

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- How to Calculate Double Declining Depreciation in Excel

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