The DDB function (a Financial function) calculates depreciation of an asset by using the Double Declining (DDB) Method or another method specified by the user.
DDB(cost, salvage, life, period, [factor])
The DDB function has the following arguments:
cost – Required. The cost to purchase or the initial cost of an asset.
salvage – Required. The remaining useful life the asset, when it is fully depreciated.
life – Required. The useful life of the asset.
period – Required. The period for which you want to calculate the depreciation.
[factor] – Optional. The rate of depreciation, if omitted, Excel will take 2 value as default. Which denotes the double declining method.
Suppose, you purchase a car for $50,000/-, which will be depreciated over five years and it would have the salvage value of $5,000/- when it will be five years old. By using the DDB function, the depreciation for the first year will be:
The depreciation for the 1st year is $20,000/-, in a similar way, the depreciation for the remaining years will be calculated:
DB function calculates depreciation of an asset by using the fixed-declining balance method over the useful life of the asset.
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.
|#NUM!||The supplied cost or salvage <0.|
|The supplied life, period or [factor] ≤ 0.|
|The supplied [month] ≤ 0 or > 12.|
|The supplied period > life.|
|#VALUE!||The supplied arguments are non-numeric.|