Returns the depreciation of an asset for a specific period using the double-declining balance method or some other method you specify.
DDB(cost, salvage, life, period[, factor])
The DDB function has these named arguments:
| Part | Description |
| cost | Initial cost of the asset. |
| salvage | Value of the asset at the end of its useful life. |
| life | Length of useful life of the asset. |
| period | Period for which asset depreciation is calculated. |
| factor | Rate at which the balance declines. If omitted, 2 (double-declining method) is assumed. |
The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods.
The arguments life and period must be expressed in the same units. For example, if life is given in months, period must also be given in months. All arguments must be positive numbers.
The DDB function uses the following formula to calculate depreciation for a given period:
Depreciation over period = ((cost – salvage) * factor) / life
Using the double-declining balance method, this example uses the DDB function to return the depreciation of an asset for a specified period given the initial cost (InitCost), the salvage value at the end of the asset’s useful life (SalvageVal), the total life of the asset in years (LifeTime), and the period for which the depreciation is calculated (Depr), also in years.
Const YRMOS = 12 ' Number of months in a year.= "###,##0.00"= InputBox("What's the initial cost of the asset?")= InputBox("Enter the asset's value at end of its life.")= InputBox("What's the asset's useful life in months?")While MonthLife < YRMOS ' Ensure period is >= 1 year.
MsgBox "Asset life must be a year or more."
MonthLife = InputBox("What's the asset's useful life in months?")= MonthLife / YRMOS ' Convert months to years.LifeTime <> Int(MonthLife / YRMOS) Then
LifeTime = Int(LifeTime + 1) ' Round up to nearest year.If= CInt(InputBox("Enter year for depreciation calculation."))While DepYear < 1 Or DepYear > LifeTime
MsgBox "You must enter at least 1 but not more than " & LifeTime
DepYear = InputBox("Enter year for depreciation calculation.")= DDB(InitCost, SalvageVal, LifeTime, DepYear)"The depreciation for year " & DepYear & " is " & _
Format(Depr, Fmt) & "."