VDB

Microsoft Office Spreadsheet Functions

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VDB

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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?

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.