Calculates the depreciation of an asset for a specified period using the fixed-declining balance method.
Syntax
DB(cost, salvage, life, period, [month])Argument
costobligatoriskt
The initial cost of the asset.
salvageobligatoriskt
The value at the end of the depreciation (sometimes called the salvage value of the asset).
lifeobligatoriskt
The number of periods over which the asset is being depreciated (sometimes called the useful life of the asset).
periodobligatoriskt
The period for which you want to calculate the depreciation, which must use the same units as life.
monthvalfritt
The number of months in the first year; if omitted, it is assumed to be 12.
The DB function uses the fixed-declining balance method to compute depreciation at a fixed rate. This method is useful for assets that lose value more rapidly in the early years of their useful life.
=DB(10000, 1000, 10, 1)→1350Calculates the depreciation for the first year of a $10,000 asset with a $1,000 salvage value over 10 years.
Identify asset values
Gather the initial cost, expected salvage value, and total useful life of the asset.
Apply the DB function
Enter the cost, salvage, life, and the specific period you wish to calculate into the DB function.
The function will return a #NUM! error because the depreciation cannot be calculated beyond the asset's useful life.