Returns the depreciation of an asset for a specified period using the double-declining balance method or some other specified rate.
Syntax
DDB(cost, salvage, life, period, [factor])Arguments
costrequired
The initial cost of the asset.
salvagerequired
The value at the end of the depreciation (sometimes called the salvage value of the asset).
liferequired
The number of periods over which the asset is being depreciated.
periodrequired
The period for which you want to calculate the depreciation, which must use the same units as life.
factoroptional
The rate at which the balance declines; if omitted, it defaults to 2 (double-declining balance).
The DDB function calculates depreciation at an accelerated rate, where depreciation is highest in the first period and decreases in subsequent periods. The rate of depreciation is calculated as (factor / life), and the function automatically adjusts to the straight-line method when depreciation is greater than the declining balance calculation.
=DDB(10000, 1000, 10, 1)→2000Calculates the first-year depreciation for a $10,000 asset with a $1,000 salvage value over 10 years.
Input asset details
Enter the cost, salvage value, and total useful life of the asset into separate cells.
Apply the DDB function
Use the DDB function referencing these cells and specify the period for which you want to calculate the depreciation.
If the factor is omitted, Excel assumes a value of 2, which performs a double-declining balance calculation.
No, the period must be an integer and must be expressed in the same units as the life argument.