Define: Net Book Value

UK Accounting Glossary

Definition: Net Book Value

Quick Summary of Net Book Value

Cost of non-current (fixed) asset minus accumulated depreciation.

What is the dictionary definition of Net Book Value?

Dictionary Definition

Net book value is the value at which a company carries an asset on its balance sheet. It is equal to the cost of the asset minus accumulated depreciation.

NBV = Cost of The Assets – Accumulated Depreciation.


Full Definition of Net Book Value


Net Book Value FAQ's

How do you calculate net book value?

People often use the term net book value interchangeably with net asset value (NAV), which refers to a company’s total assets minus its total liabilities.

Net Book Value = Cost of the Asset – Accumulated Depreciation

What is net book value of a company?

Net book value (NBV) is the amount at which an organisation records an asset in its accounting records. Net book value is calculated as the original cost of an asset, minus any accumulated depreciation, accumulated depletion, accumulated amortisation, and accumulated impairment.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Net Book Value. Payroll & Accounting Heaven Ltd. November 22, 2019
Chicago Manual of Style (CMS):
Net Book Value. Payroll & Accounting Heaven Ltd. (accessed: November 22, 2019).
American Psychological Association (APA):
Net Book Value. Retrieved November 22, 2019, from website:

Definition Sources

Definitions for Net Book Value are sourced/syndicated from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.