The VDB function calculates depreciation of an asset, for a specified period like the first day, first monthly or first year etc. In this example, we will calculate the first-month depreciation of an asset in Excel.
Suppose, you purchased an asset with the initial cost of $5,000, the asset is assumed to have the useful life of five years and the estimated salvage value of the asset will be $500. By using the VDB function, the following steps are required to get the desired results:
1- First, we need to specify the start period and the last period for which we want to calculate the depreciation i.e.
The start period and the end period must be the same units as life.
2- The syntax of the VDB function will be:
Note that the asset’s life is being multiplied with 12 to get the monthly depreciation units.
3- The asset with the above variables has the first-month depreciation of $167.