This post will guide you how to use Excel DDB function with syntax and examples in Microsoft excel.

Description

The Excel DB function returns the depreciation of an asset for a specified period using the double-declining balance method or you can also use some other method to get the depreciation.

The DB function is a build-in function in Microsoft Excel and it is categorized as a Financial Function.

The DB function is available in Excel 2016, Excel 2013, Excel 2010, Excel 2007, Excel 2011 for Mac.

Syntax

The syntax of the DDB function is as below:

= DDB(cost, salvage, life, period, [factor])

Where the DDB function arguments are:

• Cost -This is a required argument. The original cost of the asset.
• Salvage – This is a required argument.  The salvage value at the end of the life of the asset.
• Life – This is a required argument.  The number of periods over which the asset is to be depreciated.
• Period – This is a required argument.  The period in which to calculate the depreciation.
• Factor – This is an optional argument.  The rate at which the balance declines. If the factor argument is omitted, and it will be set the default value as 2.

Note:

• If you do not use the double declining balance method, you can change the factor argument to other value.
• You can use the VDB function if you want to switch to the straight-line depreciation method when depreciation is greater than the declining balance calculation.

Excel DDB Function Examples

The below examples will show you how to use Excel DB Function to calculate the depreciation of an asset using the double declining balance method.

#1 to get the second day’s depreciation using the double declining balance method, refer to the following formula:

=DDB(B1,B2,B3,1)

#2 to get the month’s depreciation using the double declining balance method, enter the following formula in Cell C2:

=DDB(B1,B2,B3*12,1)

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Related Functions

• Excel DB Function
  The Excel DB function returns the depreciation of an asset for a specified period using the fixed-declining balance method.The syntax of the DB function is as below:= DB (cost, salvage, life, period, [month])…