DDB
The DDB function returns the amount of depreciation of an asset based on a specified depreciation rate. All arguments are number values.
DDB(cost, salvage, life, depr-period, depr-factor)
cost: The cost of the asset to be depreciated. cost is often formatted as a currency and must be greater than or equal to 0. The cost is generally the purchase price, including taxes, delivery, and setup. Certain tax benefits may be deducted from the cost.
salvage: The salvage value of the asset. salvage is often formatted as a currency and must be greater than or equal to 0.
life: The number of periods over which the asset is depreciating, known as the depreciable life or the expected useful life. life must be greater than 0. A decimal (fractional) part of life is allowed (for example, 5.5 for a five and one-half year depreciable life).
depr-period: The period for which you want to calculate depreciation. depr-period must be greater than 0. Any decimal (fractional) part of depr-period is ignored.
depr-factor: An optional number that determines the depreciation rate. depr-factor is specified as a decimal number or as a percentage (using the percent sign). If omitted, 2 (200% for double-declining) is assumed. The higher the number, the more rapid the depreciation. For example, if a depreciation rate of one and one-half times the straight line depreciation is desired, use 1.5 or 150%.
Notes
The currency shown in this function result depends on your Language & Region settings (in System Preferences in macOS 12 and earlier, System Settings in macOS 13 and later, and Settings in iOS and iPadOS).
Examples |
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Suppose you purchased an asset with a cost of $1,000 (cost) and an estimated salvage value of $100 (salvage) at the end of its depreciable life of 4 years (life). =DDB(1000, 100, 4, 1, 2) returns $500, the first year depreciation (depr-period) using the double declining balance method of depreciation (depr-factor is 2). =DDB(1000, 100, 4, 2, 2) returns $250, the second year depreciation using the double declining balance method of depreciation. =DDB(1000, 100, 4, 3, 2) returns $125, the first year depreciation using the double declining balance method of depreciation. =DDB(1000, 100, 4, 4, 2) returns $25, the fourth year depreciation using the double declining balance method of depreciation. =DDB(1000, 100, 4, 1, 1) returns $250, the first year depreciation using the straight-line method of depreciation (depr-factor is 1). =DDB(1000, 100, 4, 1, 3) returns $750, the first year depreciation using the triple declining balance method of depreciation (depr-factor is 3). |