DB function (a Financial function) calculates depreciation of an asset by using the fixed-declining balance method over the useful life of the asset. To calculate depreciation based on the Double Declining (DDB) Method or another specified method, use the DDB function.
=DB(cost, salvage, life, period, [month])
cost is the initial cost to acquire the asset,
salvage is the remaining value of the asset after completing useful life,
life means total useful life of the asset,
period means the period for which depreciation needs to be calculated, and
[month] is an optional argument which specifies the number of month in a year, if omitted, it is assumed to be 12.
Suppose, you purchase a car for $10,000, it is anticipated that the car will have the useful life of 10 years and its salvage value will be around $1,000. The DB function in Excel, calculates the yearly depreciation as under:
|#NUM!||The supplied cost or salvage <0.|
|The supplied life or period ≤ 0.|
|The supplied [month] ≤ 0 or > 12.|
|The supplied period > life.|
|#VALUE!||The supplied arguments are non-numeric.|
DDB function calculates depreciation of an asset by using the Double Declining (DDB) Method or another method specified by the user.
SLN function uses the straight-line depreciation method to find out the depreciation of an asset for one period.
SYD function is a Financial function, which returns the sum-of-years’ digits depreciation of an asset for a specific period.
VDB function calculates the depreciation of an asset, for a specified given period, by using any selected depreciation method, such as the double declining balance method etc.
AMORLINC function calculates depreciation of an asset, on a prorated basis, for a specified accounting period.
AMORDEGRC Function returns the depreciation of an asset for each accounting period till a useful life of an asset.