Returns the depreciation of an asset for any period you specify, including partial periods, using the double-declining balance method or some other method you specify. VDB stands for variable declining balance.
Syntax
VDB(cost,salvage,life,start_period,end_period,factor,no_switch)
Cost is the initial cost of the asset.
Salvage is the value at the end of the depreciation (sometimes called the salvage value of the asset).
Life is the number of periods over which the asset is depreciated (sometimes called the useful life of the asset).
Start_period is the starting period for which you want to calculate the depreciation. Start_period must use the same units as life.
End_period is the ending period for which you want to calculate the depreciation. End_period must use the same units as life.
Factor is the rate at which the balance declines. If factor is omitted, it is assumed to be 2 (the double-declining balance method). Change factor if you do not want to use the double-declining balance method. For a description of the double-declining balance method, see DDB.
No_switch is a logical value specifying whether to switch to straight-line depreciation when depreciation is greater than the declining balance calculation.
- If no_switch is TRUE, the switch to straight-line depreciation is not done even when the depreciation is greater than the declining balance calculation.
- If no_switch is FALSE or omitted, switch to straight-line depreciation when depreciation is greater than the declining balance calculation.
All arguments except no_switch must be positive numbers.
Example
The example may be easier to understand if you copy it to a blank spreadsheet.
How?- Create a blank spreadsheet.
- Select the example in the Help topic.
Selecting an example from Help
- Press CTRL+C.
- In the spreadsheet, select cell A1, and press CTRL+V.
- To switch between viewing the formula that returns the result and the result in the cell, select the cell and press F2 and then ENTER, or click Commands and Options on the spreadsheet toolbar, click the Formula tab, and look in the Formula in active cell (active cell) box.
| Data | Description |
|---|---|
| 2400 | Initial cost |
| 300 | Salvage value |
| 10 | Lifetime in years |
| Formula | Description (Result) |
| =VDB(A2, A3, A4*365, 0, 1) | First day's depreciation. Assumes that factor is 2 (1.32) |
| =VDB(A2, A3, A4*12, 0, 1) | First month's depreciation (40.00) |
| =VDB(A2, A3, A4, 0, 1) | First year's depreciation (480.00) |
| =VDB(A2, A3, A4*12, 6, 18) | Depreciation between the sixth month and the eighteenth month (396.31) |
| =VDB(A2, A3, A4*12, 6, 18, 1.5) | Depreciation between the sixth month and the eighteenth month using a factor of 1.5 instead of the double-declining balance method (311.81) |
| =VDB(A2, A3, A4, 0, 0.875, 1.5) | Depreciation for the first fiscal year that you own the asset, assuming that tax laws limit you to 150-percent depreciation of the declining balance. Asset is purchased in the middle of the first quarter of the fiscal year. (315.00) |
Note The results are rounded to two decimal places.