Financial
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=DDB()
Returns the depreciation of an asset for a specified period using the double-declining balance method or some other method you specify.
Applies To:
Excel for Microsoft 365Excel for Microsoft 365 for MacExcel 2024Excel 2024 for MacExcel 2021Excel 2021 for MacExcel 2019Excel 2016
=DDB(cost, salvage, life, period, [factor])
Hover argument names in the table for details.
Output typeNumber
Popularity30 / 100
VolatileNo
Dynamic ArrayNo
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◧ Arguments
| Argument | Type | Required | Description |
|---|---|---|---|
cost |
Number | Required | The initial cost of the asset. |
salvage |
Number | Required | The value at the end of the depreciation (sometimes called the salvage value of the asset). This value can be 0. |
life |
Number | Required | The number of periods over which the asset is being depreciated (sometimes called the useful life of the asset). |
period |
Number | Required | The period for which you want to calculate the depreciation. Period must use the same units as life. |
factor |
Number | Optional | The rate at which the balance declines. If factor is omitted, it is assumed to be 2 (the double-declining balance method). |
▣ Examples
▦ Data
| Cell | Value | Description |
|---|---|---|
A2 |
$2,400 | Initial cost |
A3 |
$300 | Salvage value |
A4 |
10 | Lifetime in years |
A5 |
$2,400 | Initial cost |
A6 |
$300 | Salvage value |
A7 |
10 | Lifetime in years |
First day's depreciation, using double-declining balance method. Default factor is 2.
=DDB(A2,A3,A4*365,1)
Result:
$1.32
First month's depreciation.
=DDB(A2,A3,A4*12,1,2)
Result:
$40.00
First year's depreciation.
=DDB(A2,A3,A4,1,2)
Result:
$480.00
Second year's depreciation using a factor of 1.5 instead of the double-declining balance method.
=DDB(A2,A3,A4,2,1.5)
Result:
$306.00
Tenth year's depreciation. Default factor is 2.
=DDB(A2,A3,A4,10)
Result:
$22.12
§ 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:
- Min( (cost - total depreciation from prior periods) * (factor/life), (cost - salvage - total depreciation from prior periods) )
- Change factor if you do not want to use the double-declining balance method.
- Use the VDB function if you want to switch to the straight-line depreciation method when depreciation is greater than the declining balance calculation.
✦ Tips
- All five arguments must be positive numbers.
- 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:
- Min( (cost - total depreciation from prior periods) * (factor/life), (cost - salvage - total depreciation from prior periods) )
- Change factor if you do not want to use the double-declining balance method.
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