DDB

Syntax

DDB (Cost, Salvage, Life, Period)

Description

The DDB function returns the depreciation on an asset using the Double Declining Balance method. This is an accelerated depreciation method.

Parameters

Parameter	Description
Cost	The cost of the asset.
Salvage	The worth of the asset at the end of its useful life.
Life	The number of periods in the asset's useful life.
Period	The period for which you wish to determine the depreciation.

Returns

The depreciation on an asset using the Double Declining Balance method.

Example

Suppose you purchase a machine for USD 6000, and you plan to sell it for USD 500 after 5 years. You can calculate the depreciation for each year as follows:

• DDB(6000, 500, 5, 1) = 2400

• DDB(6000, 500, 5, 2) = 1440

• DDB(6000, 500, 5, 3) = 864

• DDB(6000, 500, 5, 4) = 518

• DDB(6000, 500, 5, 5) = 278