DDB

Syntax:

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

Description: Computes the depreciation of an asset for a specified period using the double-declining balance or some other specified method.
Note: : Use VDB
3.17.7.338) for a straight-line depreciation method when depreciation is greater than the declining balance calculation. ]

Mathematical Formula:

MIN((cost - total depreciation from prior periods) * (factor/life), (cost - salvage - total depreciation from prior periods))

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.)

factor

number

The rate at which the balance declines. If omitted, it is assumed to be 2 (the double-declining balance method).

Return Type and Value: number – The depreciation of an asset for a specified period.

However, if

  • salvage < 0 #NUM! is returned.

  • cost life <= 0, #NUM! is returned.

  • life <= 0 #NUM! is returned.

  • period <= 0, #NUM! is returned.

  • factor <= 0, #NUM! is returned.

example: