DDB Function
Returns a Double specifying the depreciation of an asset for a specific time period using the double-declining balance method or some other method you specify.
Syntax
DDB(cost, salvage, life, period[, factor])
The DDB function has these named arguments:
| Part | Description |
|---|---|
| cost | Required. Double specifying initial cost of the asset. |
| salvage | Required. Double specifying value of the asset at the end of its useful life. |
| life | Required. Double specifying length of useful life of the asset. |
| period | Required. Double specifying period for which asset depreciation is calculated. |
| factor | Optional. Variant specifying rate at which the balance declines. If omitted, 2 (double-declining method) is assumed. |
Remarks
The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods.
The life and period arguments must be expressed in the same units. For example, if life is given in months, period must also be given in months. All arguments must be positive numbers.
The DDB function uses the following formula to calculate depreciation for a given period:
Depreciation / period = ((cost – salvage) * factor) / life