The calculation for depletion of natural resources is similar to the calculation for units-of-production depreciation.

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Depletion is a method of allocating the cost of natural resources over the period of their use, similar to the units-of-production depreciation method used for allocating the cost of fixed assets over their useful lives. Both methods involve estimating the total units (e.g. tons of ore, miles driven) that will be extracted or used over the life of the resource or asset, and then applying a cost-per-unit rate to determine the amount of expense that should be recognized each period.

The Calculation for Depletion of Natural Resources Is Similar to the Calculation