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.