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DDB
Returns the depreciation of an asset for a specified period using the double-declining balance method or some other method you specify.
Syntax
DDB(cost,salvage,life,period,factor)
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 being depreciated (sometimes called the useful life of the asset).
Period is the period for which you want to calculate the depreciation. 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).
All five arguments must be positive numbers.
Remarks
- The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods. DDB uses the following formula to calculate depreciation for a period:
((cost-salvage) - total depreciation from prior periods) * (factor/life)
- Change factor 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.
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) |
| =DDB(A2,A3,A4*365,1) | First day's depreciation. Factor is automatically assumed to be 2. (1.32) |
| =DDB(A2,A3,A4*12,1,2) | First month's depreciation (40.00) |
| =DDB(A2,A3,A4,1,2) | First year's depreciation (480.00) |
| =DDB(A2,A3,A4,2,1.5) | Second year's depreciation using a factor of 1.5 instead of the double-declining balance method (306.00) |
| =DDB(A2,A3,A4,10) | Tenth year's depreciation. Factor is automatically assumed to be 2 (22.12) |
Note The results are rounded to two decimal places.