DDB

Specifies the depreciation of an asset for a specific time period using the double-declining balance method, or some other method that you specify.

Syntax

DDB(cost, salvage, life, period, factor)

The DDB function has the following named arguments:

cost

Required. Variant specifying initial cost of the asset.

salvage

Required. Variant specifying value of the asset at the end of its useful life.

life

Required. Variant specifying length of useful life of the asset.

period

Required. Variant specifying period for which asset depreciation is calculated.

factor

Required. Variant specifying rate at which the balance declines.

Remarks

The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods.

The life and period arguments 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 / period = ((cost – salvage) * factor) / life