## 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.

## 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)
```