This function calculates the depreciation of an asset for a specified period using the fixed‑declining balance method.
DB(cost,salvage,life,period,month)
This functions has these arguments:
| 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 uses 12 months |
The fixed-declining balance method computes depreciation at a fixed rate. This function uses the following equation to calculate depreciation for a period:
(cost – total depreciation from prior periods) x 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 function uses this equation:
dep = cost x rate x month/12
For the last period, the function uses this equation:
dep = ((cost – total dep. from prior periods) x rate x (12 – month))/12.
Accepts numeric data for all arguments. Returns numeric data.
DB(B1,1000,10,1)
DB(R1C2,10000,10,1)
DB(500000,5000,5,1,10) gives the result $25,0833.3333333333