DB

Syntax:

DB ( cost , salvage , life , period [ , [ month ] ] )

Description: Computes the depreciation of an asset for a specified period using the fixed-declining balance method.

Mathematical Formula:

The fixed-declining balance method computes depreciation at a fixed rate. DB uses the following formulas to calculate depreciation for a period:

(cost - total depreciation from prior periods) * 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, DB uses this formula:

cost * rate * month / 12

For the last period, DB uses this formula:

((cost - total depreciation from prior periods) * rate * (12 - month)) / 12

Arguments:

Name

Type

Description

cost

number

The initial cost of the asset.

salvage

number

The value at the end of the depreciation. (This is sometimes called the salvage value of the asset.)

life

number

The number of periods over which the asset is being depreciated. (This is sometimes called the useful life of the asset.)

period

number

The period for which the depreciation is to be calculated. (period shall use the same units as life.)

month

number

The number of months in the first year. If omitted, a value of 12 is used.

Return Type and Value: number – The depreciation of an asset for a specified period using the fixed-declining balance method.

However, if

  • cost, salvage, life, or period < 0, #NUM! is returned.

  • month is outside the range 1–12, #NUM! is returned.

example: