# 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 for 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)