DB
Name
Depreciation (fixed-declining balance method)
Description
Calculates the depreciation of an asset for a specified period using the fixed-declining balance method.
Syntax
DB(Cost, Salvage, Life, Period, Month)
Remarks
Arguments are as follows:
| Argument | Description |
|---|---|
| Cost | Initial cost of the asset |
| Salvage | Value at the end of the depreciation period |
| Life | Number of periods over which the asset is being depreciated |
| Period | Period for which you want to calculate the depreciation Use the same units as the Life argument. |
| Month | (Optional) Number of months in the first year If omitted, the calculation assumes 12 months. |
The fixed-declining balance method computes depreciation at a fixed rate. The DB function uses the following formulas to calculate depreciation for a period:
(Cost – total depreciation from prior periods) × rate
where:
rate=1 – ((Salvage/Cost)^(1/Life)), rounded to three decimal places
Depreciation for the first and last periods is a special case. For the first period, the DB function uses this formula:
Cost × rate × month/12
For the last period, the DB function uses this formula:
((Cost – total depreciation from prior periods) × rate × (12 – month))/12
Data Type
Accepts numeric data for all arguments. Returns numeric data. For more information, see Data Type for Each Cell Type.
Example
DB(R1C2,10000,10,1)
DB(500000,5000,5,1,10)=250833.3333333333