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| Microsoft Excel > Functions > Financial > DDB |
DDB(cost, salvage, life, period [,factor]) |
| Returns the depreciation of an asset using the double declining balance method. |
| cost | The initial cost of the asset. | |
| salvage | The value at the end of the depreciation. | |
| life | The number of periods over which the asset is being depreciated. | |
| period | The period to calculate the depreciation over. | |
| factor | The rate at which the balance declines. |
| REMARKS |
| All five arguments must be positive numbers. | ||
| the value at the end of the depreciation (sometimes called the salvage value of the asset). | ||
| the number of periods over which the asset is being depreciated (sometimes called the useful life of the asset). | ||
| The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods. | ||
| The "period" and "life" must be expressed in the same units of time: years, months or days. | ||
| If "factor" is left blank, it is assumed to be 2 (the double-declining balance method). | ||
| The "factor" can be changed if you do not want to use the double-declining balance method. | ||
| Use the VDB() function if you want to switch to the straight-line depreciation method when depreciation is greater than the declining balance calculation. | ||
| This function uses the following formula to calculate depreciation for a period: ((cost-salvage) - total depreciation from prior periods) * (factor/life). | ||
| Example 1 - What is the depreciation in the first year if I have an asset worth £5,000, it has a 10-year life and has a salvage value of £200. |
| EXAMPLES |
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