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#Financial

DB

Excel Functions

Depreciation - fixed-declining balance

Syntax

EXCEL 
=DB(cost, salvage, life, period, [month])

Arguments

Parameter Description
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.
month [optional] Number of months in the first year. Defaults to 12.

Return Value

Depreciation in given period

Details

The Excel DB function returns the depreciation of an asset for a specified period using the fixed-declining balance method. The calculated depreciation 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 year. In the example shown, the formula in C6, copied down, is: where named ranges are "cost" = G4, "salvage" = G5, and "life" = G6. To get a rate to use to calculate depreciation based on fixed-declining balance, Excel uses the following formula: To calculate depreciation in each year, Excel uses a formula like this:

Examples

Example 1

In the example shown, the formula in C6, copied down, is:

EXCEL 
=DB(cost,salvage,life,B6)
Fixed-declining balance calculation

To get a rate to use to calculate depreciation based on fixed-declining balance, Excel uses the following formula:

EXCEL 
rate=1-((salvage/cost)^(1/life))
Fixed-declining balance calculation

To calculate depreciation in each year, Excel uses a formula like this:

EXCEL 
=(cost-prior depreciation)*rate

See Also

SLN DB DDB SYD VDB