Depreciation Expense Formula, or accelerated depreciation, is an accounting method used to calculate the decline in the value of certain assets over time. It allows companies to gradually expense the costs associated with the asset while spreading them out over a designated period. This method seeks to quantify and record the cost of using and regular upkeep expenses related to the asset. In general, the depreciation formula takes into account the original cost of an asset, its estimated useful life, predicted residual value at the end of its life and the frequency at which it depreciates. By accounting for all these variables, companies can accurately and more reliably assess the cost of their assets throughout their individual lifespans.