Returns the depreciation of an asset for the specified period using the double-declining balance method or a custom declination method.
Syntax
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DDB( Number cost, Number salvage, Number lifeTime, Number period, [Number declinationFactor = 2] ) → Currency |
Parameters
- cost
- Required. The initial cost of the asset. Must be greater than or equal to zero.
- salvage
- Required. The value at the end of the depreciation. Must be greater than or equal to zero and less than cost.
- lifeTime
- Required. The number of periods over which the asset is being depreciated. Must be greater than zero.
- period
- Required. The period for which you want to calculate the depreciation. Must be greater than zero and in the same unit as lifeTime.
- declinationFactor
- Required. The rate at which the balance declines. Must be a positive number. If omitted, it is assumed to be 2 (double-declining).
Remarks
The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods. DDB uses the following formula to calculate depreciation for a period:
- ((cost - salvage) - total_depreciation_from_prior_periods) * (factor / lifeTime)
Example
| Formula
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=DDB(2000,500,365,1) |
See Also
Function Reference
SLN Function