## 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])``
• 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.

## How to use

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)
``````

Author

### Dave Bruns

Hi - I'm Dave Bruns, and I run Exceljet with my wife, Lisa. Our goal is to help you work faster in Excel. We create short videos, and clear examples of formulas, functions, pivot tables, conditional formatting, and charts.