The unit of production method is a method of calculating the depreciation of the value of an asset over time.

The method becomes useful when an asset’s value is more closely related to the number of units it produces than to the number of years it is in use. This method often results in greater deductions being taken for depreciation in years when the asset is heavily used, which can then offset periods when the equipment experiences less use.

This method can be contrasted with time-based measures of depreciation, such as straight-line or accelerated methods.