Processing math: 100%

Depletion Cost Per Unit Calculator

Calculate Depletion Cost Per Unit





Formula

The formula to calculate the Depletion Cost Per Unit (DCPU) is:

DCPU=TCRVTU

Where:

Definitions

Example

Let's say the total cost of the resource is $1,000,000, the residual value is $100,000, and the total number of units is 500,000. Using the formula:

DCPU=1,000,000100,000500,000

We get:

DCPU=1.80 dollars per unit

So, the depletion cost per unit is $1.80 per unit.