DDB

Excel Functions

Depreciation - double-declining

Syntax

EXCEL

=DDB(cost, salvage, life, period, [factor])

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.
`factor`	[optional] Rate at which the balance declines. If omitted, defaults to 2.

Return Value

Depreciation in given period

Details

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: 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:

Examples

Example 1

The DDB function calculates the depreciation of an asset in a given period using the double-declining balance method. The double-declining balance met

EXCEL

=MIN((cost-pd)*(factor/life),(cost-salvage-pd))

Example 2

The factor argument is optional and defaults to 2, which specifies the double-declining balance method. You can change factor to another value to infl

EXCEL

=DDB(cost,salvage,life,B7)

DDB

Syntax

Arguments

Return Value

Details

Examples

See Also