Book Value (Net Book Value)
·article·2026-06-12
Book Value (Net Book Value)
Definition
An asset's original cost minus accumulated depreciation/amortization — its remaining unexpensed value on the balance sheet.
Formula
Book value = Cost - Accumulated depreciation
Worked Example
Server after 2 years of $2,250/year depreciation:
Book value = $9,600 - $4,500 = $5,100
Interpretation & Pitfalls
Book value is an accounting quantity, not market value. A fully depreciated server (book value = salvage) may still run production for years.
In TupicFinance
Asset registers show live book value computed from posted schedule entries.