Purpose
Return value
Syntax
=DDB(cost,salvage,life,period,[factor])- 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.
Using the DDB function
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)
Related functions
SLN Function
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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 and, optionally, the number of months in the first...
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.
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.
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 straight line calculation. VDB stands for variable...
