Exceljet

Quick, clean, and to the point

Excel DDB Function

Excel DDB function
Summary 

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.

Purpose 
Depreciation - double-declining
Return value 
Depreciation in given period
Syntax 
=DDB (cost, salvage, life, period, [factor])
Arguments 
  • 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.
Usage notes 

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)
Related functions 
Excel SLN function
Excel SLN Function

The Excel SLN function returns the depreciation of an asset for one period, calculated with a straight-line method. The calculated depreciation is based on initial asset cost, salvage value, and the number of periods over which the asset is...

Excel DB function
Excel DB Function

The Excel DB function returns the depreciation of an asset for a specified period using the fixed-declining balance method. The calculation is based on initial asset cost, salvage value, the number of periods over which the asset is depreciated...

Excel DDB function
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.

Excel SYD function
Excel SYD Function

The Excel SYD function returns the "sum-of-years" depreciation for an asset in a given period. The calculated depreciation is based on initial asset cost, salvage value, and the number of periods over which the asset is depreciated.

Excel VDB function
Excel VDB Function

The Excel VDB function returns the depreciation of an asset for given period, using the double-declining balance method or another method specified by changing the factor argument. By default, the VDB function will switch to...

Excel Formula Training

Formulas are the key to getting things done in Excel. In this accelerated training, you'll learn how to use formulas to manipulate text, work with dates and times, lookup values with VLOOKUP and INDEX & MATCH, count and sum with criteria, dynamically rank values, and create dynamic ranges. You'll also learn how to troubleshoot, trace errors, and fix problems. Instant access. See details here.

500 Formula Examples, thoughtfully explained.