Returns the depreciation allowance of an asset for the specified period using the fixed-declining balance method.
Syntax
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DB( Number cost, Number salvage, Integer lifeTime, Number period, [Number month = 12] ) → Currency |
Parameters
- cost
- Required. The initial cost of the asset. Must be greater than zero.
- salvage
- Required. The value at the end of the depreciation. Must be greater than or equal to zero.
- lifeTime
- Required. The number of periods over which the asset is being depreciated. Must be a positive integer value.
- period
- Required. The period for which to calculate the depreciation. Must be greater than zero and in the same units as lifeTime.
- month
- Optional. The number of months in the first year. If omitted, it is assumed to be 12.
Remarks
The fixed-declining balance method computes depreciation at a fixed rate. DB uses the following formulas to calculate depreciation for a period:
- rate = 1 - ((salvage / cost) ^ (1 / lifeTime))
rounded to three decimal places - value = (cost - total_depreciation_from_prior_periods) * rate
For the first period, DB uses this formula:
- value = cost * rate * month / 12
For the last period, DB uses this formula:
- value = ((cost - total_depreciation_from_prior_periods) * rate * (12 - month)) / 12
Example
| Formula
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=DB(1000000,100000,6,1) |
See Also
Function Reference
DDB Function
SLN Function