# Excel DDB Function

The Excel DDB function returns the depreciation of an asset for a given period using the double-declining balance method or another method you specify by changing the *factor* argument.

*cost*- Initial cost of asset.*salvage*- Asset value at the end of the depreciation.*life*- Periods over which asset is depreciated.*period*- Period to calculation depreciation for.*factor*- [optional] Rate at which the balance declines. If omitted, defaults to 2.

The DDB function calculates the depreciation of an asset in a given period using the double-declining balance method. The double-declining balance method computes depreciation at an accelerated rate – depreciation is highest in the first period and decreases in each successive period. To calculate depreciation, the DDB function uses the following formula:

=MIN((cost-pd)*(factor/life),(cost-salvage-pd))

where pd = total depreciation in all prior periods.

The *factor* argument is optional and defaults to 2, which specifies the double-declining balance method. You can change* factor* to another value to influence the rate of depreciation. This is why DDB is sometimes defined as "double-declining method" or "other method". In the example shown, the formula in D7 copied down, is:

=DDB(cost,salvage,life,B7)

## Download 100+ Important Excel Functions

Get over 100 Excel Functions you should know in one handy PDF.