DDB
Name
Depreciation (double-declining balance method)
Description
Calculates the depreciation of an asset for a specified period using the double-declining balance method or another method you specify.
Syntax
DDB(Cost, Salvage, Life, Period, Factor)
Remarks
Arguments are as follows:
| Argument | Description |
|---|---|
| Cost | Initial cost of the asset |
| Salvage | Value at the end of depreciation |
| 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. |
| Factor | (Optional) Rate at which the value declines If omitted, the calculation assumes 2 (double-declining method) Change this to a value other than 2 to use a different method. |
All five arguments must be positive numbers.
The DDB function uses the following formula to calculate depreciation for a period:
Cost – Salvage(total depreciation from prior periods) × Factor/Life
Data Type
Accepts numeric data for all arguments. Returns numeric data. For more information, see Data Type for Each Cell Type.
Example
DDB(R1C2,10000,10,1)
DDB(500000,5000,5,1,4)=400000